Part 2: Calculating beta and required return for Pepsi (PEP)

Go to Yahoo Finance and download monthly data for the past 5 years for the S&P 500 and for Pepsi (Adj. Close). Calculate the monthly percent returns for each, and then calculate beta. While in Yahoo Finance, find the latest PPS for Pepsi, the last dividend paid (under Statistics, Forward Annual Dividend Rate), and the projected growth rate (under Analysis, Next 5 Years). Then go to the Fed's FRED website (https://fred.stlouisfed.org/) to get the 10-year Treasury rate as a measure of the risk-free rate, and use a 6% market risk premium. Calculate the cost of equity for Pepsi using the average of CAPM and DGM.

Part 3: Estimate Valuation of Pepsi (assuming WACC = cost of equity only)

Find FCF for Pepsi using annual financial statements for 2019. Use the projected future growth rate for Pepsi and use cost of equity for WACC (from Part 2).

Calculate Pepsi's value of operations.