Pepsi shares trade on the Nasdaq under the ticker symbol PEP. In 2021, Pepsi was paying a
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Pepsi shares trade on the Nasdaq under the ticker symbol PEP. In 2021, Pepsi was paying a dividend of $4.25 and analysts forecasted a five-year growth rate of 7.48 percent for Pepsi and a 6 percent growth rate for the overall market. Suppose Pepsi grows at 7.48 percent for five years and then at 6 percent thereafter. Assuming a 12 percent discount rate, what value would we place on PEP?
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Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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