During 20X6, PepsiCo, Inc., had sales of $35.1 billion, operating profit of $6.4 billion, and net income

Question:

During 20X6, PepsiCo, Inc., had sales of $35.1 billion, operating profit of $6.4 billion, and net income of $5.6 billion. Earnings per share (EPS) were $3.42. On May 15, 20X7, of a share of PepsiCo's was priced at $67.26 on the New York Stock Exchange.
What investment capitalization rate did investors appear to be using to determine the value of 1 share of PepsiCo stock? The formula for the value of 1 share of stock uses EPS in the calculation.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...