PepsiCo, Inc.s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented

Question:

PepsiCo, Inc.’s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are available at each company’s respective website.

Instructions

a. What percentage of authorized shares was issued by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015?

b. How many shares are held as treasury stock by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015?

c. How many Coca-Cola common shares are outstanding at December 31, 2015? How many PepsiCo shares of common stock are outstanding at December 26, 2015?

d. Compute earnings per share and return on common stockholders’ equity for both companies for 2015. Assume PepsiCo’s weighted average shares were 1,469 million and Coca-Cola’s weighted average shares were 4,352 million. Can these measures be used to compare the profitability of the two companies? Why or why not?

e. What was the total amount of dividends paid by each company in 2015?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...

Fantastic news! We've Found the answer you've been seeking!