PepsiCo, Inc.: Cost Of Capital

Abstract

A Wall Street Journal article states, “At PepsiCo, Inc., cola was king, but it is quietly being dethroned.” PepsiCo is composed of three lines of business: soft drinks, restaurants, and snack foods. Using data from comparable pure-play companies, the student is asked to compute divisional costs of capital and see if they can be reconciled with the company's reported cost of capital, 11%.

Citation

Eades, K.M. and Thornhill, D. (2017), "PepsiCo, Inc.: Cost Of Capital", . https://doi.org/10.1108/case.darden.2016.000228