You notice that Coca-Cola has a stock price of $42.01 and EPS of $1.86. Its competitor PepsiCo has EPS of $3.71. But, J...
You notice that Coca-Cola has a stock price of $42.01 and EPS of $1.86. Its competitor PepsiCo has EPS of $3.71. But, Jones Soda, a small batch Seattle-based soda producer has a P/E ratio of 35.4. Based on this information, what is one estimate of the value of a share of PepsiCo stock? One share of PepsiCo stock is valued at? (Round to the nearest cent.)
Homework Answers
PE ratio of Coca Cola = Price / EPS
= 42.01 / 1.86
= 22.59
Price of PepsiCo = EPS * PE Ratio of Coca Cola
= $ 3.71 * 22.59
= $ 83.79
As Coca COla and Pepsico are big companies, It is advicable to consider PE ratio of Coco Cola rather than Jonessoda
Add Answer to:
You notice that Coca-Cola has a stock price of $42.01 and EPS of $1.86. Its competitor PepsiCo has EPS of $3.71. But, J...
You notice that PepsiCo (PEP) has a stock price of $105.64 and EPS of $6.3.Its competitor, the Coca-Cola Company (KO), has EPS of $2.43. Estimate the value of a share of Coca-Cola stock using only this data.
You notice that PepsiCo (PEP) has a stock price of $105.64 and EPS of $6.3.Its competitor, the Coca-Cola Company (KO), has EPS of $2.43. Estimate the value of a share of Coca-Cola stock using only this data.
You notice that PepsiCo (PEP) has a stock price of $113.17 and EPS of $6.18. Its...
You notice that PepsiCo (PEP) has a stock price of $113.17 and EPS of $6.18. Its competitor, the Coca-Cola Company (KO), has EPS of $2.27. Estimate the value of a share of Coca-Cola stock using only this data. The value of a share of Coca-Cola stock is $ . (Round to the nearest cent.)
Coca-Cola has expected EPS of $2.1. Its competitors have the following P/E ratios: Dr Pepper Nestle...
Coca-Cola has expected EPS of $2.1. Its competitors have the following P/E ratios: Dr Pepper Nestle Pepsico P/E ratio 22.07 23.49 21.37 Part 1 1 Attempt 1/10 for 10 pts. What is the intrinsic value based on the lowest P/E ratio? 1+ decima Submit Part 2 1 | Attempt 1/10 for 10 pts. What is the intrinsic value based on the highest P/E ratio? 1+ decima Submit Part 3 Il Attempt 1/10 for 10 pts. What is the intrinsic value...
The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo are presented in...
The Coca-Cola Company and PepsiCo, Inc.
The financial statements of Coca-Cola and PepsiCo are presented
in Appendices C and D, respectively. The companies' complete annual
reports, including the notes to the financial statements, are
available online.
Instructions
Use the companies' financial information to answer the following
questions.
a. Based on the information contained in these financial
statements, determine each of the following for each company.
1. Cash used in (for) investing activities during 2017 (from the
statement of cash flows)....
You are evaluating the stock price of Kroger, a grocery store chain. It has forward earnings...
You are evaluating the stock price of Kroger, a grocery store chain. It has forward earnings per share of $3.33. You notice that its competitor Safeway has a P/E ratio of 12.1. What is a good estimate of Kroger's stock price? The stock price will be? (Round to the nearest cent.)
7 You are evaluating the stock price of Kroger, a grocery store chain. It has forward...
7 You are evaluating the stock price of Kroger, a grocery store chain. It has forward earnings per share of $ 2.85. You notice that its competitor Safeway has a P/E ratio of 12.4 . What is a good estimate of Kroger's stock price? The stock price will be $ (Round to the nearest cent.)
Assume that Cola Co. has a share price of $42.26. The firm will pay a dividend of $1.39 in one year, and you expect Cola Co. to raise this dividend by approximately 6.9% per year in perpetuity a. If...
Assume that Cola Co. has a share price of $42.26. The firm will pay a dividend of $1.39 in one year, and you expect Cola Co. to raise this dividend by approximately 6.9% per year in perpetuity a. If Cola Co.'s equity cost of capital is 8.1%, what share price would you expect based on your estimate of the dividend growth rate? b. Given Cola Co.'s share price, what would you conclude about your assessment of Cola Co.'s future dividend...
Hi, can you check these answers? Thank you! The last four years of returns for a...
Hi, can you check these answers? Thank
you!
The last four years of returns for a stock are as follows: Year 3 2 28.3% Return - 4.1% 12.3% 4.3% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is 10.20 %. (Round to two decimal places.) b. What is the variance of the...
Coca-cola in India case. 1. What aspects of US culture and of Indian culture may have...
Coca-cola in India case.
1. What aspects of US culture and of Indian culture may have
been causes of Coke's difficulties in India?
2. How might Coca-Cola have responded differently when this
situation first occurred, especially in terms of responding to
negative perceptions among Indians of Coke and other MNCs?
3. If Coca-Cola wants to obtain more of India’s soft drink
market, what changes does it need to make?
4. How might companies like Coca-Cola and PepsiCo demonstrate
their commitment...
Please use own words. Thank you. CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions...
Please use own words. Thank you.
CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions listed below in specific detail. A minimum of 4 pages is required; ensure that you answer all questions completely Case Questions Who are the main players (name and position)? What business (es) and industry or industries is the company in? What are the issues and problems facing the company? (Sort them by importance and urgency.) What are the characteristics of the environment in which...
You notice that PepsiCo (PEP) has a stock price of $113.17 and EPS of $6.18. Its competitor, the Coca-Cola Company (KO), has EPS of $2.27. Estimate the value of a share of Coca-Cola stock using only this data. The value of a share of Coca-Cola stock is $ . (Round to the nearest cent.)
Coca-Cola has expected EPS of $2.1. Its competitors have the following P/E ratios: Dr Pepper Nestle Pepsico P/E ratio 22.07 23.49 21.37 Part 1 1 Attempt 1/10 for 10 pts. What is the intrinsic value based on the lowest P/E ratio? 1+ decima Submit Part 2 1 | Attempt 1/10 for 10 pts. What is the intrinsic value based on the highest P/E ratio? 1+ decima Submit Part 3 Il Attempt 1/10 for 10 pts. What is the intrinsic value...
The Coca-Cola Company and PepsiCo, Inc.
The financial statements of Coca-Cola and PepsiCo are presented
in Appendices C and D, respectively. The companies' complete annual
reports, including the notes to the financial statements, are
available online.
Instructions
Use the companies' financial information to answer the following
questions.
a. Based on the information contained in these financial
statements, determine each of the following for each company.
1. Cash used in (for) investing activities during 2017 (from the
statement of cash flows)....
Assume that Cola Co. has a share price of $42.26. The firm will pay a dividend of $1.39 in one year, and you expect Cola Co. to raise this dividend by approximately 6.9% per year in perpetuity a. If Cola Co.'s equity cost of capital is 8.1%, what share price would you expect based on your estimate of the dividend growth rate? b. Given Cola Co.'s share price, what would you conclude about your assessment of Cola Co.'s future dividend...
Hi, can you check these answers? Thank
you!
The last four years of returns for a stock are as follows: Year 3 2 28.3% Return - 4.1% 12.3% 4.3% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is 10.20 %. (Round to two decimal places.) b. What is the variance of the...
Coca-cola in India case.
1. What aspects of US culture and of Indian culture may have
been causes of Coke's difficulties in India?
2. How might Coca-Cola have responded differently when this
situation first occurred, especially in terms of responding to
negative perceptions among Indians of Coke and other MNCs?
3. If Coca-Cola wants to obtain more of India’s soft drink
market, what changes does it need to make?
4. How might companies like Coca-Cola and PepsiCo demonstrate
their commitment...
Please use own words. Thank you.
CASE QUESTIONS AND DISCUSSION > Analyze and discuss the questions listed below in specific detail. A minimum of 4 pages is required; ensure that you answer all questions completely Case Questions Who are the main players (name and position)? What business (es) and industry or industries is the company in? What are the issues and problems facing the company? (Sort them by importance and urgency.) What are the characteristics of the environment in which...
Most questions answered within 3 hours.
-
Enter your answer in the provided box. To what fraction of its
original volume, Vfinal/Vinitial, must...
asked 30 minutes ago -
Can you figure out if any R functions used to subset a time
series 1 or...
asked 55 minutes ago -
Which of the following is correct?
A. APC + MPS = 1
B. APS + MPS...
asked 1 hour ago -
Given a regression sum of squares equal to 2373.59 and a total
sum of squares equal...
asked 2 hours ago -
Compare and contrast the linear motion and angular motion
equations F ma and . That is,...
asked 1 hour ago -
Now that this course has taken you on a journey of introduction
to the world of...
asked 2 hours ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 4 hours ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 4 hours ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 6 hours ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 5 hours ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 5 hours ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 6 hours ago