The following information was taken from the financial statements of Coca-Cola and PepsiCo (dollar amounts in millions).

a. Compute return on equity, return on assets, capital structure leverage, profit margin, and asset turnover for each company for 2019. Discuss the comparison.
b. For each company, what number results from the following: return on assets X capital structure leverage?
c. For each company, what number results from the following: profit margin X asset turnover?
d. Compare Coca-Cola to PepsiCo. Which company has the higher return on equity and why? Which company has the higher return on assets and why?

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Coca-Cola 2019 2018 Income Statement Sales $37,266 $34,300 Net income 8,920 6,434 Balance Sheet Assets $86,381 $83,216 Shareholders' equity 21,098 19,058 PepsiCo 2019 2018 Income Statement Sales $67,161 $64,661 Net income 7,314 12,515 Balance Sheet Assets $78,547 $77,648 Shareholders' equity 14,868 14,602