Executive Summary Of Pepsico
Beginning of paper
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 paper
.... of retained
earnings. First I found the three growth rates which were historical, forecast,
and sustainable growth. The historical and forecast annual rates I simply
pulled directly from Value Line under Past 10 years and estimated years of the
dividends. They both were 14.0%. The sustainable growth is calculated by
taking the retention rate (b) and multiplying it by the return on equity (r ).
To find b, I first calculated the dividends payout ratio which is DPS/EPS. I
pulled DPS and EPS ....
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Word count: 553
Page count: 3 (approximately 250 words per page)
