Assignment
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Profitability Ratios
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Your Company (Pepsi)
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Competitor (Coca-Cola)
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Most Recent Year
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Prior Year
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Most Recent Year
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Prior Year
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Return on Shareholders' Equity
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Return on Assets
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Leverage (defined as ROE - ROA)
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Profit Margin
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Gross Profit Margin
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Asset Turnover
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I. How successful is your company in using its business strategy to generate profits? Compare to competitor. This should be an in-depth analysis, and one of the most significant sections of the paper.
II. Explain the major reasons that net income changed from the prior year. Make sure to read the company-provided MD&A (which is management's explanation), and refer to the vertical/horizontal income statement you prepared in Assignment 1 in developing your answer to this question.
III. Do you think profits will continue at the same level or rise/decline next year? Why?
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.