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PepsiCo., Inc. (PEP) 1. There are several methods how to calculate the growth rate. One of the possible ways is to calculate the sustainable growth rate as g=ROE *(1-Dividend payout ratio). You can find ROE and the Dividend Payout Ratio on (MORNINGSTAR WEBSITE) > Company s page - under Financials and under Dividends Calculate PepsiCo's sustainable growth rate. Show your work? 2. Apply the Gordon model (constant growth rate model) to calculate the intrinsic (economic) value of PepsiCo. Show your work. 3. Compare the result of your calculations with the current stock price. Is the stock overvalued undervalued, or properly valued? Why? In accordance with your findings, is it reasonable to buy the stock? Why? Explain your answer. PepsiCo., Inc. (PEP) 1. There are several methods how to calculate the growth rate. One of the possible ways is to calculate the sustainable growth rate as g=ROE *(1-Dividend payout ratio). You can find ROE and the Dividend Payout Ratio on (MORNINGSTAR WEBSITE) > Company s page - under Financials and under Dividends Calculate PepsiCo's sustainable growth rate. Show your work? 2. Apply the Gordon model (constant growth rate model) to calculate the intrinsic (economic) value of PepsiCo. Show your work. 3. Compare the result of your calculations with the current stock price. Is the stock overvalued undervalued, or properly valued? Why? In accordance with your findings, is it reasonable to buy the stock? Why? Explain your

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