The annual reports of the Coca-Cola Co. and PepsiCo. Inc., indicate the following for the year ended December 31.2014 (amounts in millions):

Required:
a. Calculate ROI and ROE for each company for 2014.
b. Based on the results of your ROI and ROE analysis in part a. do you believe that either firm uses financial leverage more effectively than the other? Explain your answer.
c. Calculate the debt ratio and debt/equity ratio for each firm at the end of 2014.
d. Compare the results of your analysis in part c to your expectations concerning the relative use of financial leverage in part b. Do the debt and debt/equity ratios calculated in part c make sense relative to your expectations? Explain your answer.

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Coca-Cola Co. PepsiCo, Inc. Net revenues Net income Total assets, Jaruary 1, 2014 Total liabilities, January 1,2014 Total liabilities. December 31 , 2014 Total stockholders' equity., December 31,2014 $45,998 7,124 90,055 56,615 61,462 30,561 $66,683 6,558 77.478 53,089 52,961 17,548