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The dividends per year for PepsiCo are shown in the following table: On January 14, 2011 the price for the stock was $66.78. Use these
The dividends per year for PepsiCo are shown in the following table: On January 14, 2011 the price for the stock was $66.78. Use these payments to find the annual dividend growth rate. Then, find the required rate of return for this stock, assuming the future dividend growth rate will remain the same and the company has an infinite horizon. Does this return seem reasonable for PepsiCo? What was the annual dividend growth rate for PepsiCo's stock? % (Round to two decimal places.) - X Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Dividend $0.555 $0.575 $0.595 $0.630 $0.850 $1.010 $1.160 $1.425 $1.650 $1.775 $1.890 Print Done
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