Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Looking for help with Problem 7-48. Picture 1 of 2 has relevant financial information and Picture 2 of 2 has required questions to answer. Thank

image text in transcribed

image text in transcribed

Looking for help with Problem 7-48. Picture 1 of 2 has relevant financial information and Picture 2 of 2 has required questions to answer. Thank you!

7-43 Module 7 | Liabillty Recognition and Nonowner L02, 3, 4, 5 P7-48. Interpreting and Analyzingmelion PepsiCo Ine. reports $32,322 million of long-ierm debt outstanding as of Decemb schedule to its 10-K report Debt Footnotes In PEPSICO INC. (PEP) 2015 Debt Obligations and Commitments 2014 millions Short-term debt obligations Current maturities of long-term debt Commercial paper (0.3% and 0.1 %). Other borrowings (10.0% and 17.7%) $ 3,109 $ 4,098 46 4,071 5,078 S 4,033 Long-term debt obligations Notes due 2015 (1.4%) Notes due 2016 (2.6% and 2.6%) Notes due 2017 (1.2% and 1.6%) . . . Notes due 2018 (3.6% and 4.4%) 3,087 4,392 P7- 2.004 1,627 3,830 ,983 15,22811,657 40 32,322 27,917 Notes due 2020 (2.4% and 3.8%) 36 (3.109) 4096) Less: current maturities of long-term debt obligations- Total $29,213 $23,821 Long-Term Contractual Commitments 2017- 2019 201 Payments Due by Period Total 2016 2018 2020 beyond $32,322 $3,109 $8,396 $5,447 $15,307 $ millions Long-term debt obligations. Our borrowing costs and access to capital and credit markets may be adversely affected bya downgrade or potential downgrade of our credit ratings. We expect to maintain Tier 1 commercial paper access, which we believe will facilitate appropriae financial flexibilty and ready access to global credit markets at favorable interest rates. Any dowrgrace of our credit ratings by a credit rating agency, especially any downgrade to below investment grade whether as a result of our actions or factors which are beyond our control, could increase our fu borrowing costs and impair our ability to access capital and credit markets on terms commercialya ceptable to us, or at all. Further, any downgrade of our current short-term credit ratings could imar our ability to access the commercial paper market with the same flexibility that we have experenci historically, and therefore require us to rely more heavily on more expensive types of delot finandirg Our bomowing costs and access to the commercial paper market could also be a a credit rating agency announces that our ratings are under review for a poten crease in our borrowing costs, limitations on our ability to access the global capital or a reduction in our liquidity could adversely affect our financial condition and results of op dversely affee ial downgrade. An ir and credit marels Moody's Investors Service (www.moodys.com) reported the following regarding Peps co. Rating Action: Moody's rates Pepsi's $3 billion notes A1; outlook stable New York, October 08, 2015-Moody's today assigned an A1 rating to $3 billion senior note offering in 2, 5, and 30 year maturity tranches. Pepsico ceeds for general corporate purposes. Other ratings were unchanged. THe Scuroe: Mccdy's Investor Service (www.moodys.com) Inc. the will use outlook is As of Deceinber 2016, the price of its $1 billion 5.0% senior notes maturing in 20 Finance, reports.finance.yahoo.com): pe Issuer Price Coupon(%) Maturity YTM( Corp PEPSICO INC 112.32 %) Fitch 01-Jun-2018 1.374

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_2

Step: 3

blur-text-image_3

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

Handbook Of Financial Markets Dynamics And Evolution

Authors: Thorsten Hens

1st Edition

0323165478, 978-0323165471

More Books

Students also viewed these Finance questions