Coke-Cola Company performance with a close comparison to PepsiCo (PDF)

Essay from the year 2011 in the subject Business economics - Investment and Finance, grade: A, The University of Liverpool, language: English, abstract: Financial innovation has impacted on introduction of different finance products. This has impacted on enhancing investor's freedom to choose from different investments options available in the market. Investors will have different risks altitudes and therefore, they will be able to select products which fit their needs. In most cases, Investors will often seek proper advice from investments advisory bodies prior to making investments decision. This will lower risks level as experts are well equipped with critical information on stock historical trend and can be able to make a more accurate projections.
Similarly to individual investors, banks are also very cautious prior to extending credit to companies. Credit rating is mainly used in accessing credit worthiness of a given company. This will possibly impact on excluding some companies from accessing the much needed finances. This is common where value of creditors outweigh debt owed to the company. This will however minimize potential risks to the bank incase a company fails to meet debt obligation.
It is important to note that all investments are made in the current period with potential benefits to be realized in future. Also, value of investments today may either appreciate or depreciate depending on different market and economic happenings. Banks and other interested stakeholders have been largely utilizing value for money technique in evaluating expected returns in future. Financial projections are also calculated based on expected value of returns in future.
This research paper explores Coke-Cola Company performance with a close comparison PepsiCo. Financial performance is analyzed together with stock performance in both companies. Credit rating as applied by the banks is also discussed.