Which company had higher operating leverage

Assignment Help Finance Basics
Reference no: EM13294421

In its 2009 annual report, the Coca-Cola Company reported sales of $30.99 billion for fiscal year 2009 and #31.94 billion for fiscal year 2008. The company also reported operating income (roughly equivalent to EBIT) of $8.23 billion in 2009 and $8.45 billion in 2008. Meanwhile, arch rival PepsiCo, Inc. reported sales of $43.23 billion in 2009 and $43.25 billion in 2008. PepsiCO operating income was $8.04 billion in 2009 and %6.96 billion in 2008. Based on these figures, which company had higher operating leverage?

Reference no: EM13294421

Questions Cloud

Design a 6-bit weighted register dac with full scale output : Design a 6-bit weighted register DAC whose full scale output voltage is -16V. Logic Levels are 1=+5V and 0=0V. What is the output voltage when input is 001011
Compute magnetic field should be used in second generator : One generator uses a magnetic field of 0.190 T and has a coil area per turn of 0.0425 m2. What magnetic field should be used in the second generator
Why its imp that stimulus waveforms signals be synchronized : Explain why it is important that the stimulus waveforms signals in a test waveform bench be synchronized to the inactive edge ofthe clock of the sequential circuit to be tested.
Obtain grand mean and unadjusted means : Obtain grand mean and unadjusted means for the ANCOVA model where covariate, "xc", Treatment, "a", response, "y" are considered and calculate adjusted means given the estimates
Which company had higher operating leverage : PepsiCO operating income was $8.04 billion in 2009 and %6.96 billion in 2008. Based on these figures, which company had higher operating leverage?
What is the inductance of your solenoid : You wind a small paper tube uniformly with 173 turns of thin wire to form a solenoid. What is the inductance, in microhenries, of your solenoid
Design circuit that will provide control for electric heater : the circuit should have a thermistorthat gives a linear out of 100-200Ω for temperature reading of 0-100 deg. let the circuit use the thermistor to control the heater so that it provide a constant temperature that can be selected between 50-80deg.
What factors will contribute to the riskiness of these bonds : What type of positive and negative covenants may AirJet Best Parts, Inc. use in future bond issues?
Obtain the magnitude of the average emf : A 125-turn circular coil of radius 2.75 cm is immersed in a uniform magnetic field that is perpendicular to the plane of the coil. Find the magnitude of the average EMF

Reviews

Write a Review

Finance Basics Questions & Answers

  Use appendix d

What is the difference between the present value of the settlement at 5 percent and 11 percent? Compute each one separately. Use Appendix D.

  Excess reserves in the financial system

Suppose there is $400 billion of currency in circulation in the economy outside the banking system, that depository institutions in the economy have $800 billion in checkable deposits,

  What is meant by the term underlying

What is meant by the term underlying as it relates to derivative financial instruments? What are the main distinctions between a traditional financial instrument and a derivative financial instrument?

  What is colonial bancshare required rate of return

Investors expect the average annual future return on the market to be 9.50%. Using the SML, what is Colonial Bancshare 's required rate of return?

  What is the percentage change in the price of these bonds

what is the percentage change in the price of these bonds? If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds?

  Which one of the following bonds is the least suitable

Mary is a retired widow who is financially dependent upon the interest income produced by her bond portfolio. Which one of the following bonds is the least suitable for her to own?

  What is the equity multiplier

Rainbow company has a debt-equity ratio of 1.25. Return on assets is 7.5%, and total equity is $625,000. What is the equity multiplier? Return on equity? Net income?

  How should you decide who to lay off

In the last few years, your company made a concerted effort to improve its minority hiring, so many of the new employees are minorities. How should you decide who to lay off?

  What is the value of the erosion

Class C spas are priced at $6,000 and the deluxe model sells for $17,000 each. The new mid-range spa will sell for $8,000. What is the value of the erosion?

  The time value of money

Larry Davis borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is for twenty-five years.

  Determining subprime mortgage crisis

What are the risks which are associated with debt, and why may those risks be unacceptable to the corporation that needs money?

  What is the fair price for this portfoilio

The expiration date of the options are six months from now. The risk free interest rate is 5% per annum. What is the fair price for this portfoilio. Why?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd