comparative analysis intermediate accounting 3
Create a 10- to 12-slide presentation that addresses each question in the Comparative Analysis Case: The Coca-Cola Company and PepsiCo, Inc. on p. 824 in Ch. 15 of Intermediate Accounting.
Submit your assignment in a Powerpoint presentation. Please also attach the answer sheet provided.
The Coca-Cola Company and PepsiCo, Inc.
The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies’ complete annual reports, including the notes to the financial statements, are available online
Stock price data can be found in the company’s annual 10K, filed at the SEC.
Instructions
Use the companies’ financial information to answer the following questions.
(a) What is the par or stated value of Coca-Cola’s and PepsiCo’s common or capital stock?
(b) What percentage of authorized shares was issued by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014?
(c) How many shares are held as treasury stock by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014?
(d) How many Coca-Cola common shares are outstanding at December 31, 2014? How many PepsiCo shares of capital stock are outstanding at December 31, 2014?
(e) What amounts of cash dividends per share were declared by Coca-Cola and PepsiCo in 2014? What were the dollar amount effects of the cash dividends on each company’s stockholders’ equity? (f) What are Coca-Cola’s and PepsiCo’s return on common/capital stockholders’ equity for 2014 and 2013? Which company gets the higher return on the equity of its shareholders?
(g) What are Coca-Cola’s and PepsiCo’s payout ratios for 2014?
(h) What was the market price range (high/low) for Coca-Cola’s common stock and PepsiCo’s capital stock during the fourth quarter of 2014? Which company’s (Coca-Cola’s or PepsiCo’s) stock price increased more (%) during 2014?