http://assets.coca-colacompany.com/b6/f3/ecad445f4fc1819dd37e04e057ad/form_10K_2

Question

http://assets.coca-colacompany.com/b6/f3/ecad445f4fc1819dd37e04e057ad/form_10K_2011.pdf (around pg.80)

http://higheredbcs.wiley.com/legacy/college/kieso/1118147294/annual/Pepsi2011.pdf (around pg.25)

Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc.

(d) How many Coca-Cola common shares are outstanding at December 31, 2011? How many PepsiCo shares of capital stock are outstanding at December 31, 2011?

(e) What amounts of cash dividends per share were declared by Coca-Cola and PepsiCo in 2011? 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 stock equity for 2011 and 2010? Which company gets the higher return on the equity of its shareholders?

(g) What are Coca-Cola’s and PepsiCo’s payout ratios for 2011?

(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 2011? Which company’s (Coca-Cola’s or PepsiCo’s) stock price increased more (%) during 2011?

Explanation / Answer

(d) Coca-Cola common shares outstanding at December 31, 2011 are 2,263. PepsiCo shares of capital stock outstanding at December 31, 2011 are 1,865.

(e) Amounts of cash dividends per share that were declared by Coca-Cola and PepsiCo in 2011 are 4,300 and 3,217 respectively.

(f) Coca-Cola’s and PepsiCo’s return on common/capital stock equity for 2011 are 27.3%(8,634/31,635) and 38.25%(11,859/31,003).

(g) Coca-Cola’s and PepsiCo’s payout ratios for 2011 are 49.8%(4,300)/8,634 and 27.13%(3,217)/11,859

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