Pretend you have 1 million Canadian dollars, choose a company to invest in stocks, and analyze and predict the exchange rate and stock price... as follows

Analyzing Coca-Cola's Performance Through the Lens of the IS-LM Model: A Simulated Investment Perspective Your Name Subject and Section Professor’s Name March 31, 2024 As of March 31, 2024, I bought 16,345 shares of Coca-Cola valued at USD61.18 (or CAD83.05) per share, which amounts to almost USD 1 million (CAD 1,357,395.00), excluding the taxes and fees of the investment. At the exact moment, the current exchange rate between the United States Doller (USD) and Canadian Dollar (CAD) is USD1/CAD1.36, which is well within the average exchange rate between the two currencies for the past one year (average exchange rate for 2023 is CAD 1.3501). Accordingly, even though my final results would be expressed in CAD, I used USD mainly because it has been considered the world's most stable currency for a long time. Additionally, given the close geographical proximity between the two countries, stable economic relations, close average exchange rates, and the fact that KO is primarily listed on the New York Stock Exchange (NYSE), I believe that conducting the analysis using USD would not make much of a difference but is even beneficial for this analysis. The objective of this analysis is twofold: first, to analyze the financial statistics and the market position of Coca-Cola, and second, to present an insightful picture of the obvious relationship between external economic forces and the individual firm's performance. Through the IS-LM model within a virtual investment environment, we will discover the relevancy of such factors at the decision-making level and further develop an understanding of the complicated connection between economic conditions and corporations. With this investment portfolio, I present my company of choice, Coca-Cola (NYSE: KO), due to its significant investment and vast consumer base in the Canadian markets. Coca-Cola Company, commonly referred to as Coca-Cola (KO), is one of the most popular beverage companies in the world, and its popularity is not by chance only. Its popularity is mainly because of its strong history and enormous global presence. With a market capitalization of USD 263.759 billion and a wide range of beverages, Coke has a dominant position in the drinks sector (Thanthong-Knight, 2024). In other words, this company since I believe that it would continue with its linear growth trend of 5% to 8% for the years to come, similar to what it presented in the past five (5) years, even considering the height of the Covid-19 pandemic (Stannard-Stockton & Stannard-Stockton, 2023). Accordingly, analyzing the current performance and future prices is a well-known and fundamental tool in the macroeconomic analysis of the IS-LM Model. This tool gives an example of the interaction of actual output (IS curve-goods market) with equilibrium in the money market (LM curve). Through it, economic variables like interest rates and induced investment changes can be viewed, and their effects on aggregate output and interest rates at equilibrium can be analyzed. In fact, the IS-LM Model is effective even in market dips, such as during the COVID-19 pandemic. KO's stock prices have dipped to around USD 44.25 in March 2020. Interestingly, however, a long-term analysis (and visual analysis) of the company's stock prices would reveal a very linear growth regardless of changes in the market. Moving forward to the said framework, the first thing to consider is the country's current interest rates. For instance, the impact of interest rates established by the Bank of Canada in 2024 will be one of the key factors driving economic activity - such as investment decisions, consumer behavior, and inflation. As early as January 2024, the said Canadian bank started with an overnight rate of 4.25%. Reports show that the rate then increased gradually until it reached 5% by the end of the year, which indicated the efforts to handle inflationary pressures and price stability. It is worth noting that this trend presents no significant deviation for the past ten (10) years (even during the Pandemic period), wherein the average interest rates are pegged at around 3% to 6% per annum (Holston et al., 2023). Second, the investment data is an important guide on how...