STOCK PRICE JUSTIFICATION CAPM Coca-Cola Persico Coca-Cola 2.93% PepsiCo 3.75% Beta .98 .54 12% Market Return 12% .62% .62% US Tresuary (10 year) Total: 11.7724% 6.7652% Expected Dividend Cost of Capital Equity Coca-Cola 1.6784 4.9% PepsiCo 4.029 8.6% Dividend Growth Rate (2.93%) (3.75%) Coca-Cola is the better company based off DDM/CAPM Total: $85.19 $83.07 c. How do the Cost of Equity compare to the Returns on Equity? d. Which company is better based on the DDM/CAPM analysis
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
