Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 28, 2024

Suppose Pepsico's stock has a beta of 0.62. If the risk-free rate is 4% and the expected return of the market portfolio is 8 %

Suppose Pepsico's stock has a beta of 0.62. If the risk-free rate is 4% and the expected return of the market portfolio is 8 % , what is Pepsico's equity cost of capital?

Pepsico's equity cost of capital is _____%. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Finance With Excel

Authors: Simon Benninga, Tal Mofkadi

3rd Edition

0190296380, 9780190296384

More Books

Students also viewed these Finance questions

Question

★★★★★

Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice). The couple received salary income of...

Answered: 1 week ago

Question

★★★★★

l m 2y = x, y = A. 10 B. 20 C. 30 D. 40 E. 50 to he m

Answered: 1 week ago

Question

★★★★★

=+c) Does this model improve on the model in Exercise 18? Explain.

Answered: 1 week ago

Question

★★★★★

It is a distinguishing mark of actions labeled whistle-blowing that the agent intends to force attention to a serious moral problem. How does this statement relate to whistle-blowers who come forward...

Answered: 1 week ago

Question

★★★★★

You are planning your retirement in 10 years. You currently have $174,000 in a bond account and $614,000 in a stock account. You plan to add $6,600 per year at the end of each of the next 10 years to...

Answered: 1 week ago

Question

★★★★★

A researcher found a studyr relating the distance a driver can see, 3!, to the age of the driver, x. When researchers looked at the association of x and y, they found that the coefficient of...

Answered: 1 week ago

Question

★★★★★

Novak Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate...

Answered: 1 week ago

Question

★★★★★

Vehicle speed on a particular bridge in China can be modeled as a normal distribution. If 5% of all vehicles travel less than 39.58 miles/hr and 10% travel more than 73.95 miles/hr, what are the mean...

Answered: 1 week ago

Question

★★★★★

The technical reference manual for the Cortex-A15 says that the GIC is memory mapped. That is, the core processors use memory mapped I/O to communicate with the GIC. Recall from Chapter 7 that with...

Answered: 1 week ago

Question

★★★★★

i. In preparing its financial statements for the year ended December 31, 2022, Wells Ltd inventory count was carried out on the 4 of January 2023. The value of the inventory counted was $360 000....

Answered: 1 week ago

Question

★★★★★

The daycycle dictionary in daycycle.json has a very unusual way of representing the times for sunset and sunrise. It makes use of several nested layers of dictionaries. Do you like this...

Answered: 1 week ago

Question

★★★★★

=+5. What are three best practices when it comes to creating and curating content for social media?

Answered: 1 week ago

Question

★★★★★

=+2. Define content creation. How is this relevant for social media professionals?

Answered: 1 week ago

Question

★★★★★

=+4. What are the best practices for working with influencers and creators? What are the best practices for working with ambassadors?

Answered: 1 week ago

Previous Question Next Question