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5. Presented below is the end-of-year common share price (Pt), the beginning-of-year common share price (Pt-1), and the annual dividend (Dt) for PepsiCo and Coca

5. Presented below is the end-of-year common share price (Pt), the beginning-of-year common share price (Pt-1), and the annual dividend (Dt) for PepsiCo and Coca Cola:

Pt

Pt-1

Dt

PepsiCo

$43.38

$31.53

$0.68

Coca Cola

$64.19

$49.78

$1.00

A. Which investment would have provided the better return if you had purchased 10 shares of stock?

B. As an investor, are you part of the supply of capital or demand for capital side of the capital market? Explain.

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