Coke Financial Structure

[pic] Andrea R. Hart GB550: Financial Management August 24, 2011 The Abstract The topic of this research paper will be about the capital structure of Coca Cola, This paper serves as a comparison of debt and equity. It will help determine the true value of the company while also determining what their free cash flow is and the risk level for the organization. The question that this research will try to answer is if the 125 year old company is financially ready for another 125 years. The company needs to remain liquid and keep its operating costs low during times of inflation.The methodology that will be used will be multiple financial ratios to determine how the organization is operating and compare to times of exponential increases in profits. My expected findings will be that Coca Cola will have a minimal amount of free cash flow. There would be enough to remain liquid but also to remain flexible in starting new product lines or new investments. Coca Cola already operates in over 20 0 countries and should seek to expand advertising efforts in recently adopted countries. I anticipate that the company has endured over 125 years of economical, political and social upheavals.Financial StatementsI hope to conclude that although there could be unpredicted unprecedented environmental events that Coca Cola will be able to continue operate. Table of Contents A preview of capital structure issues†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Business and financial risks related to capital structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 Modigliani and Miller’s [MM] capital structure theory †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 Criticisms of the MM model and assumptions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 Capital structure evidence and implications†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7Estimating the firm’s optimal capital structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦8 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 A preview of capital structure issues Capital structures of companies are based on the amount of debt and equity a company holds. When a company begins to increase their debt the company becomes more of a risk to investors because the compa ny now has a higher chance that it may not be able to repay its debts. Although if there is more debt an organization taxes can be reduced because the organization is able to take out what it must pay as interest to investors and holders from being taxed.The higher cost of capital translates into a lower fair value estimate, and vice versa; furthermore, seemingly small changes in cost of capital can make a significant difference in a stock's fair value (Kathman, 2002). The giant beverage maker, that’s in a fairly stable environment does not have very much debt. The company in the non-alcoholic beverage industry, Coca Cola’s cost of equity of 8. 6% when the industry average is 11. 67% and is a large influence on the WACC of 8. 4%. Although the company incurs an 8. 6 % cost on the equity the company has averaged a return on equity for the past five years of 30. %. A Company with a high weighted average cost of capital could be considered a risky company or a company in a risky industry that mainly uses equity for funding. Coca Cola’s debt to equity ratio is 23% however the total debt to equity has been on average for the past five years at 51% showing that the company uses only half debt to finance growth within the company which is accurate for a company that is not quite so capital intensive. Although the company finds itself in a well established industry, it must still make investments and use 51% of debt to finance the new growth.WACC and Free Cash Flows impact a company’s value. FCF is what would come back to a company after the investment was made to enhance the company. FCF can determine if it is worth to take on an investment. Coca Cola’s current Free Cash Flow is -546. 8 (COCA COLA CO (NYSE:KO ), 2011). Business and financial risks related to capital structure There are many factors that could play into the financial risk of Coca Cola. The company itself, affiliates, subsidiaries, licensed distributers and bottlers ar e a risk factor to Coca Cola.Bottlers generate a significant portion of Coke’s net operating revenues by selling concentrates and syrups to independent bottling partners. In 2009, approximately 79 percent of our worldwide unit case volume was produced and distributed by bottling partners in which the Company did not have a controlling interest (ITEM 1A. RISK FACTORS, 2010). The company also operates internationally which is additional business and financial risk to the company. International economies and political environments become a risk to an American investor when considering purchasing securities.Some business risk of the company includes the availability in Coca Cola’s special ingredient of extracted coca leaf, the sustainment of a network that spans 200 countries, health concerns that cause a reduction in market demands. For the company to ensure that it has enough cash flows must be able to have the infrastructure to handle the large amount of demands. Being that Coca Cola is an international company it has opened its doors to many more financial risks. Risks with their international counterparts include fluctuations in foreign currency and exchange rates effecting financial results (ITEM 1A. RISK FACTORS, 2010).If interest rates rise or new tax laws are set it would negatively impact net income. Increase in costsdue to shortages of supplies or materials to produce products or changes in accounting standards can all affect the risks of the company. Coca Cola monitors exposure to financial market risks using several objective measurement systems, including value-at-risk models. Value-at-risk calculations use a historical simulation model to estimate potential future losses in the fair value of our derivatives and other financial instruments that could occur as a result of adverse movements in foreign currency and interest rates (ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK, 2011). Modigliani and Miller’s [MM] capital structure theory The underlying and basic assumption of the Modigliani and Miller Capital Structure Theory is that there is no major difference if a company were to fund its operations with the use of debt or using equity. The 1958 Modigliani-Miller Theorem was initially designed to show that the corporation's capital structure decisions are not value increasing or decreasing; it has, however, become apparent that the theorem is far more general (MacMinn, 2011).The theory rests on assumptions that there are no brokers or bankruptcy costs, no taxes and that investors can borrow at the same rate as the corporations and that EBIT is not affected by the use of debt. In 1991 Miller explained that the theory any gain from using more of what might seem to be cheaper debt is offset by the higher cost of now riskier equity and given a fixed amount of total capital, the allocation of capital between debt and equity is irrelevant because the weighted average of the two costs of capita l to the firm is the same for all possible combinations of the two (Villamil, 2010).Criticisms of the MM model and assumptions The same assumptions that the Modigliani and Miller Capital Structure Theory is based on have been criticized. While the three Modigliani and Miller propositions make good sense and have become widely known there has been disagreement. Capital Structures that are designed to enhance value, the majority of the value is from the decisions that are made by financial managers. The value in the company is from the strategy that makes and it is the duty of the financial manager to make sure that the capital structure supports the strategy that the company is trying to pursue.Further, Coca Cola, initial strategy was to sell Ice cold Coca Cola’s to its customers. The company was able to successfully change its strategy to only produce the syrup, the process was able to be broken down and both are able to reap values and benefits. By leaving capital structures to be independently determined by the bottlers and distributors, the structure of Coca Cola Holland and Coca Cola Japan to be different. Other theories have been created in spite of the MM model such as the Trade-Off Theory which takes into consideration the costs of bankruptcy.Capital structure evidence and implications Because of the low debt that Coca Cola has it also carries a low rate for taxes. In the last 5 years, half of Coke’s worldwide investments include almost $20 billion dollars in capital expenditures and acquisitions in the U. S. In addition, each year, we invest over $10 billion dollars in our supply chain in the U. S. — including $208 million dollars that was spent this past year on supplies (Kent, 2010). In 2010, The Coca Cola Company acquired Coca Cola Enterprises (CCE) assets and liabilities.Coca Cola by purchasing CCE, Coke will have a $100 million net pre-tax income benefit, however after adjusting to the impact of the full value of the stand alo ne debt Coke will have acquired a $200 million interest expense reduction. However Coke stands to benefit from the overall transaction with a pre tax benefit in 2011 of an estimated $300 million (Investors Information, 2010). CCE is still set to acquire bottlers in Germany, Sweden and Norway as part of the deal. With Coke becoming a producer and now a larger owner in bottling, this has changed the capital structure of the company.Estimating the firm’s optimal capital structure During the acquisition of Coca Cola Enterprises (CCE) assets and liabilities, Coca Cola’s shares decreased while CCE increased. â€Å"With this transaction, we are converting passive capital into active capital, giving us direct control over our investment in North America to accelerate growth and drive long-term profitability Coke said, with the transactions that are expected to generate operational cost savings of approximately $350 million over four years for Coca-Cola and will add to earning s by 2012 (Gelsi & Spain, 2010).The current estimate of Coke’s cost of debt is 7% as well as the WACC. (Coca Cola (KO) Stock Research, Equity Ratings, News & Analysis , 2911). If this amount were to increase it is possible that it could also increase the risk to investors. Coke’s beta has been reported at . 59 and for the non-alcoholic beverage industry is average. With their current capital structure Coke has had a steady 6% in revenue growth. The company also recently acquired CCE their debts, liabilities as well as CCE’s acquisitions which is why Coke’s shares declined by 3. % (Gelsi & Spain, 2010). These changes were brought about due to economical conditions and felt the need to take over more operations. Although this acquisition effected their shares in the short term, the company has estimated that this change will save the company almost $350 million in operational costs in four years and will begin generating income by 2012. References Coca Cola (KO) Stock Research, Equity Ratings, News & Analysis . (2911). Retrieved August 23, 2011, from ValueInvesting 2. 0: http://www. wikiwealth. com/research:koCOCA COLA CO (NYSE:KO ). (2011, August). Retrieved August 23, 2011, from Forbes. Com: http://finapps. forbes. com/finapps/jsp/finance/compinfo/Ratios. jsp? tkr=KO Ehrhardt, M. C. , & Brigham, E. F. (2009). Financial Management: Theory and Practice. Mason: South-Western. Freeland, K. , Gabruk, B. , Laidlaw, K. , Levine, J. , Michaels, M. , & Schramm, G. (1998, May 4). The Beverage Industry: This One’s on the House! Retrieved August 23, 2011, from Stern NYU. Edu: http://people. stern. nyu. edu/adamodar/pdfiles/cfprojs/beverage. df Gelsi, S. , & Spain, W. (2010, Feb 25). Coca-Cola buying CCE North American bottling business. Retrieved Aug 23, 2011, from The Wall Street Journal: MarketWatch: http://www. marketwatch. com/story/coca-cola-buying-north-american-unit-of-cce-2010-02-25 Hines, J. J. (2007, March). Capital Structure w ith Risky Foreign Investment. Retrieved August 11, 2011, from Harvard Business School: http://www. people. hbs. edu/ffoley/riskycap. pdf Investors Information. (2010, Dec 14). Retrieved Aug 23, 2011, from The Coca Cola Company: ttp://www. thecoca-colacompany. com/investors/pdfs/modeling_2010. pdf ITEM 1A. RISK FACTORS. (2010). Retrieved August 23, 2011, from The Coca Cola Company. Com: http://www. thecoca-colacompany. com/investors/pdfs/10-K_2009/04_Coca-Cola_Item1A-1B. pdf ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. (2011). Retrieved August 23, 2011, from The Coca Cola Company. Com: http://www. thecoca-colacompany. com/investors/pdfs/10-K_2006/Coca-Cola_10-K_Item_07a. pdf Kale, J. R. , Noe, T. H. , & Ramirez, G. G. (Dec. , 1991).The Effect of Business Risk on Corporate Capital Structure: Theory and Evidence. The Journal of Finance , 1693-1715. Kathman, D. (2002, December 20). Why Discount Rates Matter. Retrieved August 23, 2011, from MorningStarNews. Com: h ttp://news. morningstar. com/articlenet/article. aspx? id=84699&_QSBPA=Y Kent, M. (2010, May 19). Enhancing our National Competitiveness. Retrieved August 23, 2011, from The Coca Cola Company: http://www. thecoca-colacompany. com/dynamic/leadershipviewpoints/2010/05/enhancing-our-national-competitiveness-is-not-an-option. htmlMacMinn, R. (2011). Theorems in Corporate Finance . Retrieved August 23, 2011, from MacMinn. ORG: http://macminn. org/Fin374/theorems/theorems. html The Coca Cola Company. (2011). Financial Statements. Retrieved August 9, 2011, from The Coca Cola Company. Com: http://www. thecoca-colacompany. com/investors/financial_statements. html Villamil, A. P. (2010, March 10). The Modigliani-Miller Theorem. Retrieved August 9, 2011, from Econometrics at the University of Illinois: http://www. econ. uiuc. edu/~avillami/course-files/PalgraveRev_ModiglianiMiller_

Axia College of University of Phoenix Essay

The purpose and meaning of life, is to live it in the most meaningful way a person can. I work hard on this daily, and try to show the younger generation that life can be so beautiful in a lot of positive ways if you lead it the way you want it. My personal narrative will be away to express myself like I have not done before by using theories in my readings. I am a thirty-year-old man who is very energetic, outgoing, hard working that not only values my life, but everyone else’s as well. The past five years of my life have been a five-part movie that could have big as the Lord of the Rings series. I started school, two businesses, regular job I got promoted, and bought a new house. I have had to take a back seat on being there for all my family, and friends like I am use to, because for once I had to utilize time for myself. My meaning of life stayed the same thru out these years; I think these things have made me more mature on things, and to love myself a little more. The major thing that made me really evolve in the past 5 years I believe is starting school. Six years prior to me starting at UOP I dropped out of college, because I had no clue what I wanted to use my skills for, I was very lost, unhappy, and I was doing nothing for myself it was for everyone else. That single event by enrolling back in school changed my personality over night for the better. The next day I started weeding people out of my life that where imputing nothing but negatives in it. That was defiantly the turning point for me without a doubt. This event came at the right time also in my life since I was in a very dark place at the time, so I guess you can say it was meant to be. Then I started two business ventures that I had wanted to start which proved to me that I could do something for myself to benefit my life and stability. I now have more than enough responsibilities that I did not have before, like keeping my business in order supplies to maintaining my customer relationships. My new house has been the biggest ordeal and not in a bad way it has been extremely difficult to get it to my standards, and since I am so busy I have not taking time just for my house. These challenging changes in my life now are very hard to deal with, but I would not make any changes at all, because this is the happiest I have been. I have been hard on myself, but not to the point of stressing. Happiness proves to be an interesting window through which to view continuity and change in personality (McAdams, 2006). With that said it shows in my everyday life that no matter what I am faced with today my life is a lot better now than then. I took a lot growing up without a father from not being able to afford things I wanted to not having the self-confidence in myself to make change. When you receive that unexpected high grade on a tough assignment, you are likely to feel good, and your well-being shoots way up (McAdams, 2006). Starting my businesses, buying the house, and getting promoted where some very tough assignments in the past five years, but I feel so much better about who I am with a better well being. What roles have religion, race, culture, family, and gender played in the development of my personality, well the major thing that played a role was family. My family pushed me so much to a point where failing would not be expectable in any manner. My girlfriend has never stopped believing in me she always said I will be somebody, and no one can take that from me. My race, and religion beliefs did not have a huge factor in any part of this, but my personality got me sixty percent of what I have today. Looking back on the past seeing the transition that has taking place in my life from five years ago is something in itself to boost my ego. Five years ago without UOP I can honestly say that there is no way I would be where I am now. Life is a wonderful thing to have, we make our own destiny, and being rich or poor should not make us who we are, but being in love with life and our good talents that we possess should play a huge part of what we are. McAdams, D. (2006). The person: a new introduction to personality psychology. (4th ed. ). Hoboken, NJ: John Wiley & Sons.

Benefits of promoting Stem and liberal arts education

Benefits of promoting Stem and liberal arts education In many modern societies, there has been a push in schools to emphasize the STEM fields (Science, technology, engineering and math). While there are many societal benefits such as to this educational trend, such as new technologies and scientific advancements. However, there are just as many flaws. While test scores in the sciences may look attractive, they don’t tell the whole story. To combat this growing problem, a more well-rounded style of education, such as the Liberal Arts, should be adopted. As more and more countries push the sciences, there should be an equally large push for the Liberal Arts. A more whole education is important for not only those in the STEM fields, but society a well. Today’s society is becoming more and more reliant on technology. In turn, many countries have felt the need to educate more people capable of working in these fields. For example, the Wall Street Journal recently published an article about Japan and their recent education reforms. Japan’s â€Å"goal is to transform Japans government-funded universities into either global leaders in scientific research or schools focused on vocational training† and consequently, limit the study of the humanities and Liberal Arts (Obe 2). The Japanese hope to model school’s like the California Institute of Technology and maximize their tech-ready personnel. However, in doing so, the effect on the humanities and social sciences would be immense. Culture and history would no longer be taught, and it could be lost forever. Simply studying and creating technology for the sake of doing so is not beneficial to society as a whole nor the person. Is it really necessary to put TV sc reens in our cars? What consequences would this have on society? Questions like these are why the humanities and social sciences are a necessary part of any school, college or university. A school system lacking the human aspect of life is flawed and not complete. Furthermore, countries that contain a high percentage of technologically based companies are not necessarily doing the best economically. In Fareed Zakaria’s Washington Post article, he illustrates the economical and educational differences from a nationwide view. Zakaria recognizes Sweden and Israel as countries with a large number of high tech companies who have also pushed the STEM fields. He also relates this to an internationally based study of foreign economics and technological advancements. Israel ranked first, the US second, and Sweden sixth in providing the world with technological advancements. Contrary to popular belief, this did not lead to them having high economic position. In the study, â€Å"all three countries fare surprisingly poorly in the OECD rankings. Sweden and Israel performed even worse than the United States on the 2012 assessment, landing overall at 28th and 29th, respectively, among the 34 most-developed economies† (Zakaria 7). Both Israel and Sweden have made leaps and bounds in regards to their STEM programs. Due to their focus on the sciences, their children score very well on standardized tests. While test scores and their technological production seems to look good on paper, it does not have the true desired effect on their respective societies. To effectively engage and change kids into well rounded adults, we must adopt a more liberal education. All-encompassing styles of education have been highly regarded for centuries. From the days of Plato to modern philosophers like William Cronon, the benefits of Liberal Arts have transgressed time. Cronon especially notes the benefits and helpfulness the Liberal Arts endows upon its students. His list of ten benefits are extremely relevant to modern society and the workforce. His ideas are echoed by Zakaria. Zakaria makes note that simply teaching math and science is not enough. It will not matter â€Å"how strong your math and science skills are, you still need to know how to learn, think and even write† (Zakaria 11). This speaks volumes to the Liberal Arts. It is not necessarily what you learn in college, but how you think and grow as a person by seeing more than one perspective. That is one thing STEM education may not teach you. As many countries begin to advance towards STEM, there needs to be an equally large look at the Liberal Arts. It is possible to learn a lot in a STEM field, yet it being a part of a Liberal Arts school or higher education. However, there is a difference between learning only your field, and learning about your field relative to the world around you. The real value of the Liberal Arts lies with the beholder, and what it truly means to be a complete human being.

Marketing Professional Practice Essay Example | Topics and Well Written Essays - 2750 words

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Summary - Coursework Example As per the requirements of US GAAP and Securities and Exchange Commission, the income statement of PepsiCo shows the comparative financial performance of the company over last three years, i.e. 2009, 2010 and 2012. There is one extra ordinary item is also included with the head of â€Å"bottling equity income†. However, this item was of non-recurring nature such that it was present in the income statements of 2009 and 2010 but in 2011, this figure was not shown by the company. The requirement to show both basic and diluted earnings per share is also provided in the income statement of PepsiCo. There are few optional items also presented by the company in order to provide more meaningful picture of the company especially to its shareholders such as weighted average number of ordinary shares outstanding and dividend per share declared by PepsiCo over last three years. Contingencies Contingencies, is a specific type of liability under which account head is presented on the face o f the balance sheet but its amount is not showed. Generally, contingencies include those items the results of which can go either in favor or against the company such as lawsuits, long-term contractual obligations, commitments etc. However, contingencies are presented only when their respective amounts are probable and can be reliably estimated as well. PepsiCo has also provided contingencies on its balance sheet under the name of commitments and contingencies. There are different kinds of contingencies under which PepsiCo is obligated, such as non-cancelable commitments. These non-cancelable commitments include commitments for operating leases of building, purchasing agreements with the suppliers of sugar and sweeteners, oranges and its juices and related packaging material. Non-cancelable marketing agreements are also signed by PepsiCo mainly for its sports based marketing. There are some items, which have not been included under contingencies by PepsiCo such as bottler funding an d medical plan related liabilities for retirees. Bottler funding is that agreement which is negotiated by PepsiCo with its suppliers on yearly basis. Medical plan is not included because expected future cash outflows in this regard are not represented as long-term contractual obligations. Off-balance sheet transactions and items are also not included in the commitment and contingencies because PepsiCo has not made it its practice to include in its financial statements unless they constitute under the normal course of business of PepsiCo. INTANGIBLES Being a multi-national entity, PepsiCo has acquired different sorts of intangible assets such as brands, computer software, franchises, goodwill etc. The company has developed various criteria in order to value its intangibles, which are discussed below. Brands PepsiCo develops certain brands the cost of which is normally expensed out by the company in the year in which the brand is developed. Certain brands are acquired by PepsiCo such that their goodwill is recognized separately in the balance sheet. With respect to the life of brands, there are two types of brands i.e. brands with definite life and brands with indefinite life. PepsiCo has the specific brand valuation criteria, which it follows in order to assess the life of the brand. Generally, the brands with definite lives are amortized over a period ranging from 5 to 40 years are

Reflection Essay Example | Topics and Well Written Essays - 1000 words - 16

Reflection - Essay Example Many students feel that the meals they take for lunch are not tasty and as a result they prefer to skip the meals. According to Martin and Oakley (438), care programs that provide the learners with meals that have proper nutrition will succeed to make the learners ready for their studies. Learners should enjoy high nutritious meals before they get to school because this will help them to easily transition to meals offered in school. The physical environment of the school is ideal for learning. While in school, the students are to access the services of a well organised classroom, play ground and dining hall. When activities change, students change their physical setting, making them able to relate the activity they are doing with the environment. A student like Samuel for example is able to differentiate the different setting with the activities to be undertaken. The physical setting of the classroom makes students ready to learn. According to Cashin and Cooper, interaction between the teachers and the students improves the environment of learning compared to using online platforms to teach students on language. The positive interactions between the students and the mentor make the students motivated to learn. The mentors are also able to demonstrate their interest to participate in the learning process of the students and to provide the students with sufficient mentorship. From the experience of interacting with the students, the general performance of the students improve substantially when new innovative mentoring techniques are used in an alternating manner. Some of the effective techniques used include brainstorming sessions, note taking sessions and group activity sessions. While note taking enables the students to further master the language, other techniques like group activities make the students to motivate each other to learn more. Teacher’s participation