Pepsi Co. – Case Study – Elisabeth Dauer
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Pepsi Co.
Chapter 1 – Introduction
Introduction
Corporations make specific and strategic decisions in the areas or capital budgeting and raising capital. Capital budgeting is the process of determining whether an investment is worthwhile or not. Often corporations can have several opportunities and they must measure each one’s potential in order to make a comparison and then choose one or even a few. (Lewis, 2013) For example, if a company is trying to determine whether to invest in research and development for a new product, or to buy new equipment in order to expand the production capacity on an existing market. The Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period are the three main methods when taking this measurement. (PepsiCo. Inc., 2012) Capital budgeting is important as the capital is usually tied up in long term projects, and need these investments to be successful. The valuation principles that are used in capital budgeting are applied in security analysis and portfolio management. Lastly, when a company has sound capital budgeting decisions, it essentially maximizes the shareholders wealth. (Brigham and Ehrhardt, 2017)

All organizations need capital. There is the choice between issuing different types of securities – whether they choose between issuing debt or equity. The actual amount of debt determines the organizations leverage. Some other methods that receive relatively little attention are the selling of non-core assets, such as property, divisions, and financial investments. Asset sale is definitely the preferred method of raising capital, however, a manager should decide whether to selling assets or issuing securities. (Lewis, 2013)

This paper will focus on PepsiCo Inc. which is an American Multinational Corporation that is headquartered in New York. In detail, this paper will briefly go over the areas of PepsiCo’s merge with Quaker Oats along with other companies, their acquisitions, capital budgeting, raising capital, and cash management.

Chapter 2 – General Analysis
PepsiCo’s acquisition of the Quaker Oats brand was a smart move for the company which ultimately will help PepsiCo to maintain stable growth and to continue to trade at high multiples. PepsiCo acquired Quaker Oats for $13.4 Billion in stock and have announced that they will make various strategic investments and productivity initiatives in order to

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(2018, 03). Pepsi Co.. EssaysForStudent.com. Retrieved 03, 2018, from
“Pepsi Co.” EssaysForStudent.com. 03 2018. 2018. 03 2018 < "Pepsi Co.." EssaysForStudent.com. EssaysForStudent.com, 03 2018. Web. 03 2018. < "Pepsi Co.." EssaysForStudent.com. 03, 2018. Accessed 03, 2018. Essay Preview By: Elisabeth Dauer Submitted: March 21, 2018 Essay Length: 592 Words / 3 Pages Paper type: Case Study Views: 356 Report this essay Tweet Related Essays Pepsi Challenge Introduction Success rarely happens instantly but failure often does. Organizations face critical moments at some point and time and must be prepared to act quickly 1,115 Words  |  5 Pages The Joy of Pepsi “The Joy of Pepsi” Britney Spears. Everyone knows who she is. So, of course, Pepsi chose her to be their ticket to obtain more Pepsi 286 Words  |  2 Pages Coke Vs Pepsi Fighting for Foreign Markets Introduction The soft-drink battleground has now turned toward new overseas markets. While once the United States, Australia, Japan, and Western Europe were the dominant soft-drink 3,287 Words  |  14 Pages Coca-Cola Vs Pepsi EXECUTIVE SUMMARY Introduction Coca-Cola and Pepsi are the two greatest competitors in the soft drink industry. A brief introduction and history of the two companies 910 Words  |  4 Pages Swot Analysis of Pepsi The overall condition of meat production and supply today and its future trends Annual consumption of meat in Mongolia is about 6-8 million heads of 1,082 Words  |  5 Pages Similar Topics Pepsi Marketing Mix Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter

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Quaker Oats And Capital Budgeting. (April 2, 2021). Retrieved from https://www.freeessays.education/quaker-oats-and-capital-budgeting-essay/