Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.5 is right and rest of the ROI and ROE is wrong.. Please help. I need as soos as possible... I'll hit The annual reports

image text in transcribed

image text in transcribed1.5 is right and rest of the ROI and ROE is wrong..

Please help.

I need as soos as possible... I'll hit

The annual reports of the Coca-Cola Co. and PepsiCo Inc. indicate the following for the year ended December 31, 2017 (amounts in millions): Net revenues Net income Total assets, January 1, 2017 Total liabilities, January 1, 2017 Total liabilities, December 31, 2017 Total stockholders' equity, December 31, 2017 Coca-Cola Co. $35,410 1,283 87,270 64,050 68,919 18,977 PepsiCo Inc. $63,525 4,908 73,490 62,291 68,823 10,981 Required: . Calculate ROI and ROE for each company for 2017. (Hint. You will need to calculate some of the numbers used in the denominator of hese ratios.) (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) Coca Cola PepsiCo % % ROI ROE % % . Based on the results of your ROI and ROE analysis in part a, do you believe that either firm uses financial leverage more effectively han the other? (Hint Compare the percentage differences between ROI and ROE for each firm.) O Yes O No . Calculate the debt ratio and debt/equity ratio for each firm at the end of 2017. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) PepsiCo Coca Cola % Debt ratio ROI Coca Cola PepsiCo 1.5% 6.2% 6.8% 44.7% ROE Coca Cola PepsiCo 78.4% 86.2% Debt Ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Forensic Accounting

Authors: Michael A Crain, William S Hopwood

2nd Edition

1948306441, 978-1948306447

More Books

Students also viewed these Accounting questions