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The annual reports of the Coca-Cola Co and PepsiCo Inc. Indicate the following for the year ended December 31, 2017 amounts in millions): Coca-Cola Co.

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The annual reports of the Coca-Cola Co and PepsiCo Inc. Indicate the following for the year ended December 31, 2017 amounts in millions): Coca-Cola Co. Pepsice Inc. Net revenues $35,410 $63, 525 Net Income 1,283 4,908 Total assets, January 1, 2017 87,270 73,490 Total liabilities, anuary 1, 2017 64,050 62,291 Total liabilities, December 31, 2017 68,919 68,823 Total stockholders equity, December 31, 2017 18,977 10,981 Required: a. Calculate ROI and ROE for each company for 2017. (Hint. You will need to calculate some of the numbers used in the denominator of these ratios.) (Enter your answers as a percentage rounded to 1 decimal place (.e., 32.1).) PepsiCo Coca Cola 15% ROL ROL b. Based on the results of your ROI and ROE analysis in part o, do you believe that either firm uses financial leverage more effectively than the other? (Hint: Compare the percentage differences between Roland ROE for each firm.) Yes O No c. Calculate the debt ratio and debt/equity ratio for each firm at the end of 2017 (Enter your answers as a percentage rounded to 1 decimal place (ie. 32.1).) Debt ratio Debt/Equity ratio Coca Cola 78.41% % PepsiCo 862 % %

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