Question 4

	Coke	Pepsi
Net Revenue	$33.014	$70.372
Net Income	7,747	7,120
Total Assets, Jan. 1st, 20	86,381	78,547
Total Liabilities, Jan. 1st, 20	65,283	63,679
Total Liabilities, Dec. 31st, 20	66,012	79,366
Total Equity, Dec. 31st, 20	21,284	13,552

Calculate and discuss the following:

1. Return on Equity and Return on Assets.
2. Based on your answers to question a, which firm uses financial leverage more effectively?
3. What is each firms debt ratio and debt-to-equity ratio, as at Dec. 31^st?
4. Based on your answers to questions a-c, discuss your findings.