PepsiCo, Inc.: Cost of Capital
Eades, Kenneth M.,...
PepsiCo, Inc.: Cost of Capital
Eades, Kenneth M.; Thornhill, David
F-0981 | Published September 4, 1991 | 12 pages Case
Collection: Darden School of Business
Product Details
A Wall Street Journal article states, "At PepsiCo, Inc., cola was king, but it is quietly being dethroned." PepsiCo is composed of three lines of business: soft drinks, restaurants, and snack foods. Using data from comparable pure-play companies, the student is asked to compute divisional costs of capital and see if they can be reconciled with the company's reported cost of capital, 11%.
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