Financial management VN
30
Financial Management Lecturer : Prof. Thomas Bradley
Transcript of Financial management VN
Financial Management
Lecturer: Prof. Thomas Bradley
Group 16Đinh Công Tài 332887
Lê Ngọc Hoàng Nhật 332896
Financial analysis : Pepsico & Coca-cola
Outline
I. OverviewII.Financial analysis III.ConclusionIV.References
Overview
Pepsi’s Income StatementYear 2008 2009 2010 2013 2014 Net Sales Or Revenues 43251 43232 57838 66415 66683 Cost Of Goods Sold 20351 20099 26575 31243 30884 Gross Profit 22900 23133 31263 35172 35799 Selling General And Admin Expense 15901 15026 22814 25357 26126 Income Before Depreciation Depletion Amortization 6999 8107 8449 9815 9673 Depreciation Depletion Amortization 64 63 117 110 92 Non Operating Income 415 432 803 97 85 Interest Expense 329 397 903 911 909 Pretax Income 7021 8079 8232 8891 8757 Provisionfor Income Taxes 1879 2100 1894 2104 2199 Minority Interest - 33 18 47 45 Income Before Extraordinaries And Disc Operations 5142 5979 6338 6787 6558 Net Income 5142 5946 6320 6740 6513 Average Shares Used To Compute Diluted E P S 1602 1577 1614 1560 1527 Average Shares Used To Compute Basic E P S 1602 1577 1590 1560 1509 Income Before Non Recurring Items 5887 5846 6675 6823 7066 Income From Non Recurring Items (745) 100 (355) (83) (553) E P S Basic Net 3.21 3.77 3.97 4.32 4.27 E P S Diluted Net 3.21 3.77 3.91 4.32 4.27 E P S Diluted Before Non Recurring Items 3.68 3.71 4.13 4.37 4.63 Dividend Per Share Common 1.65 1.78 1.89 2.24 2.53
Pepsi’s Balance SheetYear 2008 2009 2010 2013 2014 Year 2008 2009 2010 2013 2014
Cash 2064 3943 5943 9375 6134 Notes Payable 369 464 4898 5306 5076
Marketable Securities 213 192 426 303 2592 Accounts Payable 8273 8127 10923 12533 13016
Receivables 4683 4624 6323 6954 6651 Income Taxes Payable 145 165 71 N/A N/A
Inventory 2522 2618 3372 3409 3143 Total Current Liabilities 8787 8756 15892 17839 18092
Raw Materials 1228 1274 1654 1732 1593 Deferred Charges Taxes Income 226 659 4057 5986 5304
Work In Progress 169 165 128 168 173 Long Term Debt 7858 7400 19999 24333 23821
Finished Goods 1125 1179 1590 1509 1377 Other Long Term Liabilities 7017 5591 6729 4931 5744
Other Current Assets 1324 1194 1505 2162 2143 Total Liabilities 23888 22406 46677 53089 52961
Total Current Assets 10806 12571 17569 22203 20663 Preferred Stock
(97) (104)
(109)
(130)
(140)
Property Plant And Equipment 22552 24912 33041 36961 36300 Common Stock Net 30 30 31 25 25
Accumulated Depreciation 10889 12241 13983 18386 19056 Capital Surplus 351 250 4527 4095 4115 Net Property Plant And Equipment 11663 12671 19058 18575 17244 Retained Earnings 30638 33805 37090 46420 49092
Investment And Advances 3883 4484 1368 1841 2689 Treasury Stock 14122 13383 16745 21004 24985
Intangibles 6984 9157 28469 32652 29053 Other Liabilities
(4,694)
(3,156)
(3,318)
(5,017)
(10,559)
Deposits And Other Assets 2658 965 1689 2207 860 Shareholders Equity 12106 17442 21476 24389 17548
Total Assets 35994 39848 68153 77478 70509 Total Liabilities And Shareholders Equity 35994 39848 68153 77478 70509
Year 2008 2009 2010 2013 2014 Net Income Cash Flow 5142 5979 6338 6787 6558 Depreciation Depletion Amortization C F 1543 1635 2327 2663 2625 Net Increase Decrease In Assets Liabilities (424) 264 763 958 1159
Other Adjustments Net 738 (1,082) (980) (720) 164 Net Cash From Used By Operating Activities 6999 6796 8448 9688 10506
Increase Decrease In Prop Plant And Equipment (2,348) (2,070) (3,172) (2,686) (2,744)
Acquisition Disposition Of Subsidiaires (1,601) (386) (3,804) 21 115
Increase Decrease In Investments 1282 55 (675) 61 (2,298)
Other Cash Inflow From Investment Activities N/A N/A (17) (21) (10)
Net Cash From Used By Investment Activities (2,667) (2,401) (7,668) (2,625) (4,937)
Issuance Purchase Of Equity Shares (4,106) 406 (3,945) (1,885) (4,267) Issuance Repayment Of Debt Securities 3070 831 5892 301 1666
Increase Decrease In Bank And Other Borrowings 445 (1,018) 2482 1165 (1,997)
Payment Of Dividends And Other Cash Distributions (2,541) (2,732) (2,978) (3,434) (3,730)
Other Cash From Used By Financing Activities 107 16 (65) 64 64
Net Cash From Used By Financing Activities (3,025) (2,497) 1,386 (3,789) (8,264)
Effect Of Exchange Rate Changes On Cash (153) (19) (166) (196) (546)
Net Change In Cash And Cash Equivalents 1154 1879 2000 3078 (3,241) Cash And Equivalents At Beginning Of Year 910 2064 3943 6297 9375 Cash And Equivalents At Year End 2064 3943 5943 9375 6134
Pepsi’s Cash Flow
Coca-cola’s Income StatementYear 2008 2009 2010 2013 2014 Net Sales Or Revenues 31944 30990 35119 46854 45998 Cost Of Goods Sold 11374 11088 12693 18421 17889 Gross Profit 20570 19902 22426 28433 28109 Selling General And Admin Expense 12124 11671 13977 18205 18401 Income Before Depreciation Depletion Amortization 8446 8231 8449 10228 9708 Non Operating Income -569 1070 6527 1712 100 Interest Expense 438 355 733 463 483 Pretax Income 7439 8946 14243 11477 9325 Provisionfor Income Taxes 1632 2040 2384 2851 2201 Minority Interest - 82 50 42 26 Income Before Extraordinaries And Disc Operations 5807 6906 11859 8626 7124 Net Income 5807 6824 11809 8584 7098 Average Shares Used To Compute Diluted E P S 4672 4658 4665.74 4509 4450 Average Shares Used To Compute Basic E P S 4672 4658 4666 4434 4450 Income Before Non Recurring Items 7350.41 7119 8148 9395.62 9091 Income From Non Recurring Items (1,543) (295) 3,661 (812) (1,993) E P S Basic Net 1.25 1.47 2.53 1.94 1.6 E P S Diluted Net 1.25 1.47 2.53 1.9 1.6 E P S Diluted Before Non Recurring Items 1.58 1.53 1.75 2.08 2.04 Dividend Per Share Common 0.76 0.82 0.88 1.12 1.22
Coca-cola’s Balance SheetYear 2008 2009 2010 2013 2014 Year 2008 2009 2010 2013 2014
Cash 4701 9151 8517 10414 8958 Notes Payable 6066 6749 8100 16901 19130
Marketable Securities 278 62 2820 9854 12717 Accounts Payable 6205 6657 8859 9577 9234
Receivables 3090 3758 4430 4873 4466 Income Taxes Payable 252 264 273 309 400
Inventory 2187 2354 2650 3277 3100 Total Current Liabilities 12988 13721 18508 27811 32374
Raw Materials 1481 1657 1621 2037 1966 Deferred Charges Taxes Income 877 1580 4261 6152 5636
Finished Goods 706 697 1029 1240 1134 Long Term Debt 2781 5059 14041 19154 19063
Other Current Assets 1920 2226 3162 2886 3745 Other Long Term Liabilities 3401 2965 4794 3498 4389
Total Current Assets 12176 17551 21579 31304 32986 Total Liabilities 20047 23325 41604 56615 61462
Property Plant And Equipment 14400 16467 21706 25032 25258 Common Stock Net 880 880 880 1760 1760
Accumulated Depreciation 6074 6906 6979 10065 10625 Capital Surplus 7966 8537 10057 12276 13154
Net Property Plant And Equipment 8326 9561 14727 14967 14633 Retained Earnings 38513 41537 49278 61660 63408
Investment And Advances 5779 6755 15096 11512 13625 Treasury Stock 24213 25398 27762 39091 42225
Intangibles 12505 12828 19398 27611 26372 Other Liabilities
(2,674) (210)
(1,136)
(3,165)
(5,536)
Deposits And Other Assets 1733 1976 2121 4661 4407 Shareholders Equity 20472 25346 31317 33440 30561
Total Assets 40519 48671 72921 90055 92023
Total Liabilities And Shareholders Equity 40519 48671 72921 90055 92023
Coca-cola’s Cash FlowYear 2008 2009 2010 2013 2014 Net Income Cash Flow 5807 6906 11859 8626 7124 Depreciation Depletion Amortization C F 1228 1236 1443 1977 1976 Net Increase Decrease In Assets Liabilities (688) (564) 370 (932) (439)
Other Adjustments Net 1224 608 (4,140) 871 1954 Net Cash From Used By Operating Activities 7571 8186 9532 10542 10615
Increase Decrease In Prop Plant And Equipment (1,489) (1,889) (2,081) (2,439) (2,183)
Acquisition Disposition Of Subsidiaires (759) (300) (1,539) 519 (241)
Increase Decrease In Investments (111) (1,912) (679) (1,991) (4,814)
Other Cas Inflow From Investment Activities (4) (48) (106) (303) (268)
Net Cash From Used By Investment Activities (2,363) (4,149) (4,405) (4,214) (7,506)
Issuance Purchase Of Equity Shares (493) (856) (1,295) (3,504) (2,630) Issuance Repayment Of Debt Securities 29 2363 1848 4711 4712
Payment Of Dividends And Other Cash Distributions (3,521) (3,800) (4,068) (4,969) (5,350) Other Cash From Used By Financing Activities N/A N/A 50 17 (363)
Net Cash From Used By Financing Activities (3,985) (2,293) (3,465) (3,745) (3,631) Effect Of Exchange Rate Changes On Cash (615) 576 (166) (611) (934)
Net Change In Cash And Cash Equivalents 608 2320 1496 1972 (1,456) Cash And Equivalents At Beginning Of Year 4093 4701 7021 8442 10414 Cash And Equivalents At Year End 4701 7021 8517 10414 8958
Year 2008 2009 2010 2013 2014Liquidity RatiosCurrent ratio Pepsi 1.23 1.44 1.11 1.24 1.14
Coca-cola 0.94 1.28 1.17 1.13 1.02 Industrial 0.99 1.10 1.29 0.91 1.03
Quick ratio Pepsi 0.94 1.14 0.89 1.05 0.97 Coca-cola 0.77 1.11 1.02 1.01 0.92 Industrial 0.72 0.99 0.89 0.92 0.65
Cash ratio Pepsi 0.23 0.45 0.37 0.53 0.34 Coca-cola 0.36 0.67 0.46 0.37 0.28 Industrial 0.15 0.29 0.19 0.25 0.18
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Current ratio Quick ratio Cash ratio
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1.00
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Liquidity Ratios
20082009201020132014
Financial Ratios Comparison
Year 2008 2009 2010 2013 2014Financial Leverage RatiosDebt ratio Pepsi 0.66 0.56 0.68 0.69 0.75
Coca-cola 0.49 0.48 0.57 0.63 0.67 Industrial 0.48 0.51 0.44 0.47 0.46
Time interest earned Pepsi 21.34 20.35 9.12 9.76 9.63 Coca-cola 16.98 25.20 19.43 24.79 19.31 Industrial 17.51 18.08 16.31 14.13 13.30
Cash coverage ratio Pepsi 21.53 20.51 9.25 9.88 9.73 Coca-cola 19.79 28.68 21.40 29.06 23.40 Industrial N/A N/A N/A N/A N/A
2008 2009 2010 2013 2014 -
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Debt ratio PepsiDebt ratio Coca-colaDebt ratio Industrial
Pepsi Coca-cola Industrial Pepsi Coca-colaTime interest earned Cash coverage ratio
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5.00
10.00
15.00
20.00
25.00
30.00
35.00
20082009201020132014
Financial Leverage Ratios
Financial ratios comparison
Year 2008 2009 2010 2013 2014Asset management ratiosInventory turnover Pepsi 8.07 7.68 7.88 9.16 9.83
Coca-cola 5.20 4.71 4.79 5.62 5.77 Industrial 4.36 4.84 5.75 6.13 5.06
Day's sales in inventory Pepsi 45.23 47.54 46.31 39.83 37.15 Coca-cola 70.18 77.49 76.20 64.93 63.25 Industrial 72.02 59.45 63.38 75.30 83.53
Receivables turnover Pepsi 9.24 9.35 9.15 9.55 10.03 Coca-cola 10.34 8.25 7.93 8.62 10.30 Industrial 7.66 8.95 8.76 7.72 6.91
Day's sales in receivables Pepsi 39.52 39.04 39.90 38.22 36.41 Coca-cola 35.31 44.26 46.04 37.96 35.44 Industrial 47.59 40.75 41.62 47.23 52.79
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Inventory turnover Receivables turnover
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2.00
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6.00
8.00
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12.00
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Day's sales in inventory Day's sales in receivables
- 10.00 20.00 30.00 40.00 50.00 60.00
70.00 80.00 90.00
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Asset management ratios
Financial Ratios Comparison
Financial Ratios Comparison
Year 2008 2009 2010 2013 2014Asset management ratiosTotal asset turnover Pepsi 1.20 1.08 0.85 0.86 0.95
Coca-cola 0.79 0.64 0.48 0.52 0.50 Industrial 1.03 0.99 0.94 0.78 0.69
Pepsi Coca-cola IndustrialTotal asset turnover
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0.20
0.40
0.60
0.80
1.00
1.20
1.40
20082009201020132014
Financial Ratios ComparisonYear 2008 2009 2010 2013 2014
Profitability ratiosProfit margin Pepsi 0.12 0.14 0.11 0.10 0.10
Coca-cola 0.18 0.22 0.34 0.18 0.15 Industrial 0.17 0.10 0.32 0.10 0.15
Return on asset Pepsi 0.14 0.15 0.09 0.09 0.09 Coca-cola 0.14 0.14 0.16 0.10 0.08 Industrial 0.17 0.11 0.34 0.10 0.31
Return on equity Pepsi 0.42 0.34 0.29 0.28 0.37 Coca-cola 0.28 0.27 0.38 0.26 0.23 Industrial 0.34 0.21 0.67 0.21 0.31
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Pep
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Indu
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0.10
0.20
0.30
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Profitability ratios
Financial ratios of Pepsi and Coca-cola in 2008 and 2014
Year 2008 2014 2008 2014Liquidity RatiosCurrent ratio 1.23 1.14 0.94 1.02 Quick ratio 0.94 0.97 0.77 0.92 Cash ratio 0.23 0.34 0.36 0.28 Financial Leverage RatiosDebt ratio 0.66 0.75 0.49 0.67Time interest earned 21.34 9.63 16.98 19.31Cash coverage ratio 21.53 9.73 19.79 23.40Asset management ratiosInventory turnover 8.07 9.83 5.20 5.77Day's sales in inventory 45.23 37.15 70.18 63.25Receivables turnover 9.24 10.03 10.34 10.3Day's sales in receivables 39.52 36.41 35.31 35.44Total asset turnover 1.20 0.95 0.79 0.50Profitability ratiosProfit margin 0.12 0.10 0.18 0.15Return on asset 0.14 0.09 0.14 0.08Return on equity 0.42 0.37 0.28 0.23
Pepsi company
Coca-cola company
Pep
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Time interest earned
Cash cov-erage ratio
Day's sales in inventory
-
10.00
20.00
30.00
40.00
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60.00
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80.00
20082014
Pepsico BondsPepsico 0.7% / Maturity:2015
Coca-Cola BondsCoca-Cola 1.5% / Maturity: 2015
Cash Conversion Cycle2008-2014
Year Dec-08 Dec-09 Dec-10 Dec-13 Dec-14
Cash Conversion Cycle -69.5 -60.96 28.65 17.57 7.87
-80
-60
-40
-20
0
20
40Cash Conversion Cycle
Dec-08Dec-09Dec-10Dec-13Dec-14
Significant changes in 2008-2014Changes (%)
Net Sales Or Revenues 54 Cost Of Goods Sold 52 Gross Profit 56 Selling General And Admin Expense 64 Income Before Depreciation Depletion Amortization 38 Depreciation Depletion Amortization 44 Non Operating Income -80 Interest Expense 176 Pretax Income 25 Provisionfor Income Taxes 17 Minority Interest 36 Income Before Extraordinaries And Disc Operations 28 Net Income 27 Average Shares Used To Compute Diluted E P S -5 Average Shares Used To Compute Basic E P S -6 Income Before Non Recurring Items 20 Income From Non Recurring Items -26 E P S Basic Net 33 E P S Diluted Net 33 E P S Diluted Before Non Recurring Items 26 Dividend Per Share Common 53
Pepsico’s Income Statement
Significant changes in 2008-2014Changes (%)
Cash 197 Marketable Securities 1117 Receivables 42 Inventory 25 Raw Materials 30 Work In Progress 2 Finished Goods 22 Other Current Assets 62 Total Current Assets 91 Property Plant And Equipment 61 Accumulated Depreciation 75 Net Property Plant And Equipment 48 Investment And Advances -31 Intangibles 316 Deposits And Other Assets -68 Total Assets 96
Changes (%) Notes Payable 1276 Accounts Payable 57 Income Taxes Payable -51 Total Current Liabilities 106 Deferred Charges Taxes Income 2247 Long Term Debt 203 Other Long Term Liabilities -18 Total Liabilities 122 Preferred Stock 44 Common Stock Net -17 Capital Surplus 1072 Retained Earnings 60 Treasury Stock 77 Other Liabilities 125 Shareholders Equity 45 Total Liabilities And Shareholders Equity 96
Pepsico’s Balance Sheet
Significant changes in 2008-2014
Changes (%) Net Income Cash Flow 28 Depreciation Depletion Amortization C F 70 Net Increase Decrease In Assets Liabilities -373 Other Adjustments Net -78 Net Cash From Used By Operating Activities 50 Increase Decrease In Prop Plant And Equipment 17 Acquisition Disposition Of Subsidiaires -107 Increase Decrease In Investments -279 Other Cas Inflow From Investment Activities -41 Net Cash From Used By Invesment Activities 85 Issuance Purchase Of Equity Shares 4 Issuance Repayment Of Debt Securities -46 Increase Decrease In Bank And Other Borrowings -549 Payment Of Dividends And Other Cash Distributions 47 Other Cash From Used By Financing Activities -40 Net Cash From Used By Financing Activities 173 Effect Of Exchange Rate Changes On Cash 257 Net Change In Cash And Cash Equivalents -381 Cash And Equivalents At Beginning Of Year 930 Cash And Equivalents At Year End 197
Pepsico’s Cash Flow
Significant changes in 2008-2014
Changes (%) Net Sales Or Revenues 44 Cost Of Goods Sold 57 Gross Profit 37 Selling General And Admin Expense 52 Income Before Depreciation Depletion Amortization 15 Non Operating Income -118 Interest Expense 10 Pretax Income 25 Provisionfor Income Taxes 35 Minority Interest N/A Income Before Extraordinaries And Disc Operations 23 Net Income 22 Average Shares Used To Compute Diluted E P S -5 Average Shares Used To Compute Basic E P S -5 Income Before Non Recurring Items 24 Income From Non Recurring Items 29 E P S Basic Net 28 E P S Diluted Net 28 E P S Diluted Before Non Recurring Items 29 Dividend Per Share Common 61
Coca-cola’s Income Statement
Significant changes in 2008-2014Changes (%)
Cash 91 Marketable Securities 4474 Receivables 45 Inventory 42 Raw Materials 33 Finished Goods 61 Other Current Assets 95 Total Current Assets 171 Property Plant And Equipment 75 Accumulated Depreciation 75 Net Property Plant And Equipment 76 Investment And Advances 136 Intangibles 111 Deposits And Other Assets 154 Total Assets 127
Changes (%) Notes Payable 215 Accounts Payable 49 Current Portion Of Long Term Debt 664 Income Taxes Payable 59 Other Current Liabilities N/A Total Current Liabilities 149 Deferred Charges Taxes Income 543 Long Term Debt 585 Other Long Term Liabilities 29 Total Liabilities 207 Common Stock Net 100 Capital Surplus 65 Retained Earnings 65 Treasury Stock 74 Other Liabilities 107 Shareholders Equity 49 Total Liabilities And Shareholders Equity 127
Coca-cola’s Balance Sheet
Significant changes in 2008-2014Changes (%)
Net Income Cash Flow 23 Depreciation Depletion Amortization C F 61 Net Increase Decrease In Assets Liabilities -36 Other Adjustments Net 60 Net Cash From Used By Operating Activities 40 Increase Decrease In Prop Plant And Equipment 47 Acquisition Disposition Of Subsidiaires -68 Increase Decrease In Investments 4237 Other Cas Inflow From Investment Activities 6600 Net Cash From Used By Invesment Activities 218 Issuance Purchase Of Equity Shares 433 Issuance Repayment Of Debt Securities 16148 Payment Of Dividends And Other Cash Distributions 52 Other Cash From Used By Financing Activities N/A Net Cash From Used By Financing Activities -9 Effect Of Exchange Rate Changes On Cash 52 Net Change In Cash And Cash Equivalents -339 Cash And Equivalents At Beginning Of Year 154 Cash And Equivalents At Year End 91
Coca-cola’s Cash Flow
Major elements in Income Statement
Year 2008 2009 2010 2013 2014 Net Sales Or Revenues 43251 43232 57838 66415 66683 Cost Of Goods Sold 20351 20099 26575 31243 30884 Net Income 5142 5946 6320 6740 6513 Interest Expense 329 397 903 911 909
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Interest Expense
Major elements in Balance SheetYear 2008 2009 2010 2013 2014
Total Assets 35994 39848 68153 77478 70509 Total Liabilities 23888 22406 46677 53089 52961 Shareholders Equity 12106 17442 21476 24389 17548
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Major elements in Cash Flow
Year 2008 2009 2010 2013 2014 Net Income Cash Flow 5142 5979 6338 6787 6558 Net Cash From Used By Operating Activities 6999 6796 8448 9688 10506
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References• http://amigobulls.com/stocks/PEP/income-statement/annual• http://amigobulls.com/stocks/KO/income-statement/annual• http://csimarket.com/Industry/Industry_Data.php?ind=502• http://
www.bloomberg.com/research/stocks/financials/ratios.asp?ticker=KO
• http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=pep
• http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=KO
THANKS FOR YOUR ATTENTION!!!
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