1) please compare the coca_cola Company (KO) and PepsiCo,Inc (PEP) and advice wh
ID: 2641866 • Letter: 1
Question
1) please compare the coca_cola Company (KO) and PepsiCo,Inc (PEP) and advice whichone you would invest in. You analysis should be a minimum of 2 pages of narrative and data.Please include at least five(5) ratio,an overview of management notes(from financial statments or 10K),and a review of stock performance. At least 2 years financial statements should be used for this analysis.
2) curry college Industries (CCI) is considering issuing a 15 years bond with a coupon rate of 8% and a face value of $ 1,000. Coupon payment of $40 will be made semi-annually.CCI believes that they can maintain an A rating from standard and poor is (S&P).However,rumor yields on A rated bonds are currently trading a 6% and BBB rated bonds are trading at 10%.
a.) What is the price of the bond if CCI maintain an A Rating?
b.)What is the price of the bond if CCI drops to BBB Rating?
3.) thetermsover Company is considering 3 projects. Each of the selling price and cost of goods sold for each project. The operating exoenses for each project are $500,000 and the tax rate is 10%.Consider an 8% cost for all projects.
Initial investment $2,000,000
a.) WHich project has the greatest cash flow?
b.) Which project has the highest NPV?
c.) Which project would you chose?
Projected Sales units Selling Price COGS 1 2 3 4 5 Project A $2 $1 500,000 500,000 1,000,000 1,000,000 2,000,000 Project B $2 $1 200,000 300,000 500,000 1,500,000 2,500,000 Project C $5 $2 100,000 100,000 300,000 500,000 1,000,000Explanation / Answer
a. project A is is having highest cash flows
b.
NPV= 3,399,670- 2,000,000= $1,399,670
NPV= 3,641,300- 2,000,000= 1,641,300
c. project B gives higher profits and I will chose project B
year inflow (after expenses) pv factor present value 1 500,000 0.926 463,000 2 500,000 0.857 428,670 3 1,000,000 0.793 793,000 4 1,000,000 0.735 735,000 5 2,000,000 0.680 1,360,000Related Questions
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