PepsiCo, Inc.: Cost Of Capital

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017


A Wall Street Journal article states, “At PepsiCo, Inc., cola was king, but it is quietly being dethroned.” PepsiCo is composed of three lines of business: soft drinks, restaurants, and snack foods. Using data from comparable pure-play companies, the student is asked to compute divisional costs of capital and see if they can be reconciled with the company's reported cost of capital, 11%.



Eades, K. and Thornhill, D. (2017), "PepsiCo, Inc.: Cost Of Capital", Darden Business Publishing Cases.

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