Analyze financial ratios and cash flow
Given $300 million to manage/invest. The fund is a pension/retirement fund so its perspective is long term with moderate risk of loss of capital and a required return of 9% per annum. In order to reduce the investment risk you must make 12 investments of $25 million dollars each. Determine if the fund you are managing should invest $25 million dollars in the stock of (PepsiCo).
1. Does it utilize (low cost provider, differentiation, or focus)?
2. Analyze financial ratios and cash flow measures of the company relative to its historical performance.