The basic earnings per share and price earnings ratio

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

Instructions

(a) Based on the information contained in these financial statements, determine each of the following for each company.

(1) The percentage increase (decrease) in (i) net sales and (ii) net income from 2007 to 2008.

(2) The percentage increase in (i) total assets and (ii) total common stockholders' (shareholders') equity from 2007 to 2008.

(3) The basic earnings per share and price-earnings ratio for 2008. (For both PepsiCo and Coca-Cola, use the basic earnings per share.) Coca-Cola's common stock had a market price of $45.27 at the end of fiscal-year 2008.

(b) What conclusions concerning the two companies can be drawn from these data?

Reference no: EM131143694

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