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Analyze Pepsico (PEP) in Capital IQ. Make a spreadsheet with data calculations. 1. Calculate the average borrowing cost and max borrowing cost for PEP. a.

Analyze Pepsico (PEP) in Capital IQ. Make a spreadsheet with data calculations.

1. Calculate the average borrowing cost and max borrowing cost for PEP.

a. Use CAPM to estimate equity cost (rs)

b. Use highest bond yield plus premium to estimate equity cost (rs).

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