Capital Structure

Debt

Equity

Coca ColaDr.pepperPepsi Cott

Coca Cola 57.9%Dr.pepper 53%Pepsi 62.4%Cott 76.8%

Average Debt 62.525%

Average Debt

49.05%

DEBTEquity

Do Share buybacks add valueFor Investors: • 30% of present free cash flows to go repurchases• Number of outstanding shares are decreased • Early stage investors makes money • Assets and EPS goes up

For Companies: • Average age of plant and equipment is 22 years• Investment in plant and equipment up to 40%• Free cash flow used to buy back does not increase Corporate performance. It only increases share price.