Strayer Week 10 Assignment

2345 WordsApr 25, 201310 Pages
Kevin S Dozier Strayer University Prof. Juanita Edwards ACC 557 Financial Accounting 11 Mar 2013 Introduction to Coca-Cola Coca-Cola Company is an American multinational beverage corporation headquartered in Atlanta Georgia. It is best known for its flagship product Coca-cola. The company offers more than 500 brands in over 200 countries and serves over 1.7 billion servings per day. The company’s stock is listed on the NYSE and it is a part DJIA, S&P index and the Russell 1000 index. The company had revenues of $48.01 billion in the year 2012 and a net income of $9.01 billion. Coca-cola has a total asset base of 86.17 billion and 146200 employees worldwide. Coca-Cola’s current chairman and chief executive is Muhtar Kent.…show more content…
Another motivation that led to the acquisition is the fact that Brazil and other Latin American countries form a cluster of emerging economies; therefore, the profitability of companies such as Mabel is bound to increase over time. Mabel currently, has a work force of about 12000 employees. This obviously will have an effect on the stock price of PepsiCo. This is due to the fact the revenue of the company are bound to increase over time after it has met its acquisition cost. The price of PepsiCo rose by 0.5% in the day following the acquisition news. This reversed the trend of a price as the stock had fallen by 4.7% in the year 2011 (Sanford, 2011). Another move or piece of information that may have affected the stock price is the announcement by PepsiCo that it was going to cut 8700 jobs and increased the marketing of brands by $600 million. This move was also expected to save the company up to $1.5 billion by year 2014. This will have the effect of increasing profitability of the company therefore, leading to a rise in the stock price. For example the net income per share of the fourth quarter was $1.15 while analysts had predicted $1.12 per share. The news that PepsiCo plans to buy back some shares worth $3billion is set to increase value to shareholders. The move will also see the company increase its dividend by 4% from June 2012 dividend payment onwards. This will have a positive impact on the stock price
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