PepsiCos portfolio has very good resource fit, with the companys businesses generating free cash flows of $8.1 billion in 2015, $7.7 billion in 2016, and $7.2 billion in 2017.

(Click to select) Yes No

b. In 2017, the Frito-Lay North American business segment had an estimated cash flow of $4.6 billion, which was highest among the six business segments.

(Click to select) Yes No

c. In 2017, the North American Beverages business segment had an estimated cash flow of $2.3 billion, which was second highest among the six business segments.

(Click to select) Yes No

d. In 2017, the Asia, Middle East, and North Africa business segment had an estimated cash flow of $1 billion, the third highest among the six business segments.

(Click to select) Yes No

e. Latin Americas Operating profit in 2017 increased from $887 million to $908 million.

(Click to select) Yes No

f. Frito Lay North America operating profit margins gradually increased from 2015 to 2017.

(Click to select) Yes No

g. North America Beverage's operating profit margins increased by 10% between 2016 and 2017.

(Click to select) Yes No

h. Asia, Middle East and North Africa business Unit reported the greatest increase in in operating profit margin (approx. 8%).

(Click to select) Yes No

i. PepsiCos Frito-Lay North America and North America Beverage's business units generate the vast majority of cash flows.

(Click to select) Yes No

j. With the exception of the Latin America business unit in 2015, all business units had very healthy positive cash flows in each year between 2015 and 2017.

(Click to select) Yes No

k. Due to large annual capital expenditures, PepsiCo International has been unable to generate positive cash flows during the 2015 - 2017 timeframe.

(Click to select) Yes No

l. The North American Beverage's unit has far lower operating profit margins relative to Frito-Lay North America and Quaker Foods North America but compares favorably with PepsiCos international business units.

(Click to select) Yes No

m. Between 2015 and 2016 most of the business units reported either losses or very small gains in operating profits.

(Click to select) Yes No

a. PepsiCos chief managers have been able to build a collection of food and beverage brands capable of providing shareholders with the opportunity for above-average market returns.

(Click to select) Yes No

b. PepsiCos stock price performance has been unimpressive over the past four years (2015 2018) with a decrease of around 12%.

(Click to select) Yes No

c. The companys shares have declined from a peak of $120 per share in January 2018 to about $105 in mid-2018 and have appreciated by only about half the rate of the S&P 500 since mid-2016.

(Click to select) Yes No

d. The companys businesses all hold impressive positions in their respective industries and some have outstanding potential for growth.

(Click to select) Yes No

e. It is likely that the sales of soft drinks and snack foods will grow quickly along with the current annual growth rates.

(Click to select) Yes No

f. PepsiCo has the potential to increase Gatorades sales outside of the U.S. and Frito-Lays focus on developing BFY and GFY snacks is likely to contribute to revenue and volume gains in developed countries where health and fitness are growing concerns of consumers.

(Click to select) Yes No

g. There is some question concerning the ability to gain synergistic benefits between some of Quakers food businesses and PepsiCos convenience food and beverage businesses, but the cash flow analysis and operating profit margins suggest that these businesses do have the ability to contribute to increased shareholder value through their impressive cash flows and stellar profit margins.

(Click to select) Yes No