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Consider the Following Financial Information for the Coca-Cola Company Stock

Question 103

Essay

Consider the following financial information for The Coca-Cola Company stock. Use this information to answer parts (a), (b), and (c).
Coca-Cola
Stock price per share: $54.31
Earnings per share: $2.16
Price-to-book ratio: 12.7702
(a) Calculate Coca-Cola's book value per share.
(b) Calculate Coca-Cola's price-to-earnings ratio.
(c) PepsiCo, Inc. (a competitor for Coca-Cola) has a book value per share of $9.97. If PepsiCo has the same price-to-book ratio as Coca-Cola, what is the value of PepsiCo's stock?

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