Problem 3 17 coca cola pepsico dr pepper revenues

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Problem 3-17Coca-ColaPepsicoDr PepperRevenues$41,863$62,799$6,440Cost of goods sold16,46528,2092,582Earnings6,5276,329847Total assets87,27074,1299,791Shareholders equity23,06211,2462,134a.b.Solutiona.ROE28.3%56.3%39.7%Profitability analysis.The table below shows 2016 total revenues, cost of goods soldassets, and stockholders’ equity for three companies competing in the bottled drinks mPepper Snapple Group. All dollar values are in thousands.Use the information given to analyze each firm’s profitability in as many differentWhy is this question difficult to answer?For each company, ROE > ROA. Why is that so? Look at the difference between Rhelp you determine which firm uses the highest percentage of debt to finance its aUse the information given to analyze each firm’s profitability in as many differentWhy is this question difficult to answer?
b.For each company, ROE > ROA. Why is that so? Look at the difference between Rhelp you determine which firm uses the highest percentage of debt to finance its a
d, earnings available for common stockholders, totalmarket: The Coca-Cola Company, Pepsico Inc., and Drt ways as you can. Which company is most profitable?
t ways as you can. Which company is most profitable?
ROE and ROA for each company. Does that differenceactivities?
Problem 3-20ItemPelican PaperTimberland ForestTotal assets$10,000,000$10,000,000Total equity (all common)9,000,0005,000,000Total debt1,000,0005,000,000Annual interest100,000500,000Total sales25,000,00025,000,000EBIT6,250,0006,250,000Earnings available forcommon stockholders3,690,0003,450,000a.1. Debt ratio2. Times interest earned ratiob.Calculate the following profitability ratios for the two companies. Discuss their pro1. Operating profit margin2. Net profit margin3. Return on total assets4. Return on common equityc.Solution

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Term
Spring
Professor
YONG
Tags
Finance, Balance Sheet, Financial Ratio, Generally Accepted Accounting Principles, Zach Industries

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