6. Sustainable Growth. In Table 4-9, we report Pepsi's sustainable growth rate as 26.5%. (LOS) a. What

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6. Sustainable Growth. In Table 4-9, we report Pepsi's sustainable growth rate as 26.5%. (LOS)

a. What would the sustainable growth rate be if Pepsi's plowback ratio fell to the same value as Coke's?

b. What would the sustainable growth rate be if Pepsi's return on equity were only as great as its cost of equity, 9.5%?

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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