Determine the cost of debt: Using information from the firms website, annual report, and the Stafford Librarys database sources, determine the average rating of your firms bonds and the current YTM on a composite of these bonds. Based on this information, estimate the current cost of debt for the firm. Explain the approach and procedure you used to make your determination and what this number means.

Determine the cost of equity: Determine the required rate of return for your firm using the CAPM. Explain the approach and procedure you used (and justification for the sources of inputs used for your model) to make your determination and the meaning of this required rate of return.

Determine the capital structure of the firm: Determine the market value of the firms debt and equity. Explain the approach and procedure you used and use these values to determine the weights for the WACC. Provide an overall explanation for your results and how the firm may use this WACC. Calculations may be submitted on a separate Excel spreadsheet, with your explanations written in your paper.

The Firm used is Pepsi Co