Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparative Analysis Problem: PepsiCo, Inc. vs. The Coca-Cola Company CT11-2 PepsiCo, Inc.'s financial statements are presented in Appendix B. Financial statements of The Coca-Cola
Comparative Analysis Problem: PepsiCo, Inc. vs. The Coca-Cola Company CT11-2 PepsiCo, Inc.'s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively. Instructions (a) What percentage of authorized shares was issued by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015? (b) How many shares are held as treasury stock by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015? (c) How many Coca-Cola common shares are outstanding at December 31, 2015? How many PepsiCo shares of common stock are outstanding at December 26, 2015? (d) Compute earnings per share and return on common stockholders' equity for both companies for 2015. Assume PepsiCo's weighted-average shares were 1,469 million and Coca-Cola's weighted- average shares were 4,352 million. Can these measures be used to compare the profitability of the two companies? Why or why not? (e) What was the total amount of dividends paid by each company in 2015?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started