A1 Assignment Example | Topics and Well Written Essays - 1000 words

A1 - Assignment Example Industry events show that Pepsi has always shown a slight edge over Coca Cola on the basis of profitability growth. As stated by Thomas, this resulted from Pepsi’s activities in witnessing indomitable share repurchase as compared to Coca Cola. Both companies witness almost same annual growth rate because of their ability to maintain their shareholders value through strategy of strengthening their dividend. This is in form of the company’s earning, which helped in attracting investors consequently increasing the demand The TIE (times interest earned) and debt to assets ratio show Coca Cola has the best financial condition. Risk for Coca Cola’s failure to payout interest is much lower than Pepsi’s. Dividend payout ratios, dividend per share and dividend yield suggest that investors of Coca Cola have greater proposition of revenue from dividends. Larger dividends also reflect a healthy financial condition of company. This means that Coca Cola is likely to take up on projects, which needs funding as compared to its competitors. The global financial crisis witnessed might have brought the realized little earning per share registered by the companies in