question archive 1) Suppose? Pepsico's stock has a beta of 0
1) Suppose? Pepsico's stock has a beta of 0
Subject:FinancePrice: Bought3
1) Suppose? Pepsico's stock has a beta of 0.74. If the? risk-free rate
is 4 % and the expected return of the market portfolio is 7 %, what is? Pepsico's equity cost of? capital?
2) Your firm is planning to invest in an automated packaging plant. Harburtin
Industries is an? all-equity firm that specializes in this business. Suppose? Harburtin's equity beta is 0.86?, the? risk-free rate is 4.2 %?, and the market risk premium is 5.5 %. If your? firm's project is? all-equity financed, estimate its cost of capital.
