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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
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 i - Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) 2005 Year 2000 2001 Dividend $0.555 $0.575 2002 $0.595 2003 $0.630 2004 $0.850 2006 $1.160 2007 $1.425 2008 $1.650 2009 $1.775 2010 $1.890 $1.010 Print Done
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