Message:- HPR232: Community Health Promotion Methods Ashford University Text:Bensley, R. J., & Brookins-Fisher, J. (2009). Community health education methods: A practical guide (3rd ed.). Sudbury, MA: Jones and Bartlett Publishers. Prior to beginning work on this discussion, read the article Social Marketing for Social Change. This week you will be engaging in a social marketing/media debate that will allow you to demonstrate how strategic planning, technology, training, and action plans work to promote health education programs and health products. Step 1: Review this video highlighting the Top 10 Misleading Marketing Tactics. Step 2: Watch these two videos: Viewers’ Choice 2011 Singapore TV Commercial - Colorectal Cancer Awareness and National TV Commercial for Health Product. Step 3: Determine your group for the debate: Group 2 (Ineffective videos explanation): •Explain why the videos are not effective from the perspective of a health educator (not the consumer). Provide at least one specific example from each video. •Explain why both videos are not effective from the perspective of the consumer. Provide at least one specific example from each video. •Critique the overall ineffectiveness of the videos in conveying their message, explaining at least two reasons why each message is not appropriate for the public. WACC = [wd*Rd*(1-T)] + [we*Re] +[wp*Rp] 1. Access the current data and information on the Coca Cola Co (KO) from FINRA Click “Company Information” and enter the ticker symbol KO to access information on Coca Cola. Use this site wherever you see a reference to FINRA* below. 2. Use the information from FINRA to complete Table 1 which includes the guidelines to calculate the wacc and its components. Table 1. Cost of Capital (wacc) and Components (Rd, Re, Rp) Capital Type Rd Cost of Long Term Debt Source: FINRA Assumptions: SA compounding and $1000 Face Value Go to the FINRA Bond Center below: http://finra-markets.morningstar.com/BondCenter/Default.jsp Search for the Coca Cola corporate bond with the following symbol: KO.GC Use the features related to this bond to calculate the YTM. This bond matures in 2093. N= I/YR= PV= PMT= FV= Re Cost of Common Stock or Equity Source: Value Line Method 1 CAPM Rs = RRF + Beta(MRP) Assumptions: Risk Free Rate is based on U.S. 10 Year Treasury https://www.treasury.gov/resource-center/data-chart-center/interest- rates/Pages/TextView.aspx?data=yield MRP is based on KPMG estimate where MRP = 6% Beta comes from FINRA* KO page (Quote Tab) Page 2 of 3 Method 2 Discounted Cash Flow (DCF) or Constant Growth Model Rs = D1/Po + g Po is current Price from FINRA KO data Quote Tab. D1 is next year Dividend D1 = most recent dividend *(1+g) Most recent dividend from FINRA KO page Use price from FINRA KO data page under Quote Tab g = sustainable growth rate = ROE * (1-POR). Both ROE and the Payout Ratio (POR) are available on FINRA* KO data page under “Key Ratio.” POR is treated as a decimal in the calculation (example POR=49%, use .49 in calculating g above. Use ROE as is. Hint: Use g as decimal in equations. Convert final Re answer from decimal to percentage for this method. Method 3 Rule of Thumb Re = Rd + Risk Premium where Risk Premium = 4-6% Rd = YTM calculated above. Use a Risk Premium = 5% Rp Cost of Preferred Stock or Equity Rp = D/Po There is no preferred stock for Coca Cola so its 0. 3.. Use the data and information from the provided resource FINRA* KO page to get the current Tax Rate (T). Enter the Tax rate as a decimal not as a percentage when calculating wacc in Table 2 below: Table 2 T Marginal Tax Rate Source: FINRA*KO data under Key Ratio Tab Assume the following for we and wd Let we = .50 and wd = .50 and wp =0. Page 3 of 3 4. Use the data collected in Table 1 and Table 2 to calculate the WACC for Coca Cola Co. WACC = [wd*Rd*(1-T)] + [we*Re] +[wp*Rp] For Re, use the average of the three Re values you calculated using the different methods. Hint: In the formula, include cost of capital by type (Rd, Re, and Rp) as percentages (%) and weight of capital by type (wd, we, wp) and Tax Rates as decimals. 5. Discuss how you would adjust the wacc you calculated in #4 above to use it to address the needs of different levels of risk in different projects and divisions in the Coca Cola Company. In your answer explain whether one single wacc estimate should be used for different projects or if different ones should be used based on level of risk. (2 paragraphs)