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Executive Summary Of Pepsico
Beginning of essay
Through my research of Pepsico, I have calculated the cost of capital. A
firm's cost of capital is imperative because it represents the funds used to
finance the firm's assets and operations. First you have to estimate the cost
of capital in order to minimize it.
In estimating the cost of capit ....
Middle of essay
....My b=
.352, and r=28.68%. Then the third growth rate was 10.10(.352*28.68).
Still calculating the cost of retained earnings, I then calculated my
cash flows by the discounted cash flow approach. For the first three cash flows,
I took the dividend of the stock over the price of the stock, and then added the
growth rate to it. My first cash flow equaled to 15.38%, second was also 15.38%,
and the third one was 11.45%. To find the cash flow four, I used the CAPM
approach. This formula is Ks=K.... |
| Number of words: 553 |
Approximate pages: 3 |
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