Case Study : The Titans Of The Soft Drink Industry Essay

985 Words4 Pages
1. Introduce your industry and the two companies you chose. Tell something interesting about each company. You will need to do a little research to find interesting information. This paragraph should be at least 5 sentences. As the titans of the soft drink industry, Coca-Cola Enterprises Inc. (Coca-Cola) and PepsiCo, Inc. (PepsiCo) battle daily for consumers’ tastes buds. Each day, consumers choose to enjoy brands from one of these two companies. So much so, that Coca-Cola states, “There are nearly 10,450 soft drinks from Coca-Cola consumed every second of every day including Diet Coke, Fanta and Sprite” (Coca-Cola). This ability to capture the market has also fueled Coca-Cola and PepsiCo’s longevity for over 100 years. To put this in perspective, Fox News illuminates that PepsiCo was, “One of the first companies in the U.S. to do away with the horse-drawn carriage method of transporting product…” (Tierney).

2. Which company pays the highest dividend relative to the purchase price of the stock? Which ratio did you use to determine this? When analyzing Coca-Cola and PepsiCo, PepsiCo’s stockholders are receiving higher relative returns on their stock investment. Their Dividend Yield is at 2.6 %, compared to Coca-Cola’s at 2.4 %. PepsiCo is returning more to its investors in dividends by percentage annually than Coca-Cola. To calculate the Dividend Yield, take the annual dividend per share and divide it by the market price of the share. The Dividend Yield measures the

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