Coke Vs. Pepsi Interpret the results of your EVA calculation. If you had to choose between Coca Cola Co. and Pepsi Co, which one would you choose? Why? Both Firms EVAs are increasing from 2001 to 2003 _EVAs of Coca Cola is significantly higher than those of PepsiCo._ _EVAs insures that management perspective and objective is to maximize shareholders wealth, as such we would choose Coca Cola. The reason is because EVA is a measure of added value, and since Coca Colas EVA is obviously greater than that of PepsiCo, it would be a good investment to choose Coca Cola as it has a higher potential._ _In the long run, Coca Cola can survive more efficiently than PepsiCo, as PepsiCo didn’t face any near bankruptcy cases, while Coca Cola did and succeeded in recovering from them._
7. Interpret the results of your EVA calculation. If you had to choose between Coca Cola Co. and Pepsi Co, which one would you choose? Why?
• Both Firms EVAs are increasing from 2001 to 2003
• EVAs of Coca Cola is significantly higher than those of PepsiCo.
• EVAs insures that management perspective and objective is to maximize shareholders wealth, as such we would choose Coca Cola. The reason is because EVA is a measure of added value, and since Coca Colas EVA is obviously greater than that of PepsiCo, it would be a good investment to choose Coca Cola as it has a higher potential.
• In the long run, Coca Cola can survive more efficiently than PepsiCo, as PepsiCo didn’t face any near bankruptcy cases, while Coca Cola did and succeeded in recovering from them....