I need help writing an executive summary for PepsiCo I have all the info.

Summarize your findings from the following steps in an executive summary?

Step I. Company Selection

Company Name: PepsiCo

Registered for S&P Capital IQ: 06/28/21

Posted company name on class discussion board on: 09/14/21

Executive Summary

Company Stock Information

Stock Price: 162.66

Trade Time: 3:50 PM

Trade Date: 11/02/21

52 week range: 128.32 - 162.26

Implied Price per Share: $5.89

Step II. Corporate Governance Analysis

Management and ownership:

CEO - Ramon Laguarta since October 3, 2018

Salary - $1,469,231

Bonus - $5,303,125

Other Compensation - $676,106

Stock options & stock - $9,694,125

Total Compensation - $17,142,587

Step III. Stockholder Analysis

Insiders/Individuals - .13%

Institutions - 73.7%

Corporations - .0%

State - .04%

Public and other - 26.12%

Venture Capital/Private Equity Firms - 0%

Company Insider Holdings (>1%): Number, Name, Role, % owned

4,855

Segun Agbaje

Independent Director

.0002%

2,435

Edith W Cooper

Independent Director

.0001%

148,647

Hugh Johnston

Vice Chairman, Executive VP & CFO

.006%

34,502

Ian Cook

President Independent Director

.002%

12,657,

Robert Pohlad,

Independent Director

.0006%

35,816,

Dina Dublon,

Independent Director

.002%

59,807,

Daniel Vasella,

Independent Director

.003%

24,073,

Alberto Weisser,

Independent Director

.001%

10,658,

Cesar Conde,

Independent Director

.0004%

36,832,

Shona Brown,

Independent Director

.002%

6,082

Michelle Gass,

Independent Director

.0003%

9,519

Daren Walker,

Independent Director

.0004%

4,055

David Lewis

Independent Director,

.0002%

13,336

David Page,

Independent Director

.0006%

30,811

David Flavell,

Executive VP, General Counsel, Corporate Counsel, Corporate Secretary and Chief Compliance & Ethics Officer

.00133%

46,886

Marie Gallagher,

Senior VP & Controller

.002%

38,616

Ronald Schellekens,

Executive VP & Chief Human Resources Officer

.0017%

75,886,

Silviu Popvici,

CEO of Latin America

.0033%

42,387,

Eugene Willemsen,

CEO of Africa, Middle East & South Asia

.0018%

Marginal Investors, Institutional Investors: Number, Name, % owned

Step IV. Risk and Return

Regression Beta - .8639

Reference Index -

Industry Average Beta - .71

Average Risk-Free Rate - 1.35%

Jensen's Alpha - .0788

R^2 from regression -

Standard error of Beta -

Market Value of Equity - $230.24B

Market Value of Debt - $41.26B

Market Value of Capital - $4.02

Debt/Equity Ratio - 2.599

Unlevered Beta - .24

Levered Beta - .27

WACC:

Beta - .83

Cost of Equity - 6.9%

After-tax Cost of Debt - 3.0%

WACC - 6%

Step V. Measuring Investment Returns

ROC - 12.44%

Cost of Capital - 5.77%

ROC-WACC - 4.9%

EVA - 1.6%

ROE - 55.2%

Cost of Equity - 5.64%

BV Equity - 13,552

Equity EVA - 7.5%

Industry ROC - 11.67%

Industry ROE: 51%

Step VI. Capital Structure Choices

Marginal Tax Rate, 29.0%

Effective Tax Rate, 26.34%

Company Debt Ratio: 258%

Company Cost of Capital: 4.83%

Industry Cost of Capital - 6.9%

Step VII. Dividend Policy

Current Dividend Policy:

Pays dividends - Yes

Frequency of dividends in last year - Quarterly

Average amount in last year - $3.80

Buybacks stock in last year - $106M

Total cash to shareholders last year - 8,185

Cash in last year (change in cash position) - 7,883

Cash/Revenues: 393.6

Step VIII. A Framework for Analyzing Dividends

Average FCFE last 5 years - 3,921,600,000

Average dividends and buybacks - 106 M

Difference, % dividends/buybacks - 2.46%

ROE - 55.20%

Cost of Equity - 6.22%

Difference ROC, WACC - 11.67%

Dividend Yield - 2.68%

Dividend Yield of industry - 2.56%

Payout Ratio - 73.25%

Difference Payout Ratio Industry - 69.6%

 

Answer rating: 100% (QA)

PepsiCo is a publicly traded company with a current stock price of 1... View the full answer