Given the following information for PepsiCo, - 4562

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UoPExpert

UoPExpert

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Request Description

Given the following information for PepsiCo, determine the company’s weighted average cost of capital.

                                   Value      Cost of Capital

   Restaurant Division          $ 5 Billion            13%

   Snack Foods Division          7 Billion            12%

   Beverages Division            13 Billion              8%

a.10.12%

b.11.00%

c.12.10%

d.13.00%

The weighted average cost of capital is derived after taking into consideration the weightings, for each finance source. Therefore WACC = 13% (5/25) + 12% (7/25) + 8% (13/25).

 
Solution Description

Given the following information for PepsiCo, determine the company’s weighted average cost of capital.

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