Please boost your Plan to download papers
Coca-Cola Company versus PepsiCo, Inc. - Essay Example
Author : kturner
Finance & Accounting
Pages 6 (1506 words)
Coca-Cola Company versus PepsiCo, Inc. Date: Table of Contents Table of Contents 2 Answer 1. 3 Answer 2. 4 The Coca-Cola Company 4 The Pepsi Company 7 Answer 3. 8 Answer 4. 10 The Coca-Cola Company 10 The Pepsi Company 11 References 12 Answer 1…
In 2009, the companies work under the 401k pension plan which provides insurance advantage on the medical requirements of the employees. In Coca-Cola the contributory plan is done by both the employer and the employees where the employer enjoys the benefit of taxation for their employees. The pension plan of PepsiCo is based on the willingness of the employees as the benefits are availed by both the full-time and international employees. The rates used by Coca-Cola and PepsiCo for calculating the pension amounts are rate of return on assets, rate of compensation, and rate of discount. For the year 2008, the expense discount rate and the rate of return on planned assets for Coca-Cola was 5.8% and 7.75%. The medical benefits for the retiree were calculated based on the available rates. PepsiCo had a discount rate of 5.7% on all US beneficiaries and 5.2% on foreign workers. The expected rate of return for PepsiCo in 2008 was 7.7%. Retirement rewards calculated were often based on the compensation rate for employees. Recent events in corporate finance have depicted the importance of efficient administration. The need to fund corporate pension plans have made many executives to offers offer defined constitution plans as because of the recent changes in IFRS. ...