What are the ways to estimate the cost of common stock

Reference no: EM133377157

Question: What are the ways to estimate the cost of common stock (i.e. or the required return on common stock)? We can use the dividend growth model formula P=D /(r-g) to estimate the cost of common stock (r). We know PepsiCo's actual closing stock price on 12/31/2013. For g, we can use the number that we will find in question #5. For D , again we can use the growth number that we will find in #5.

Reference no: EM133377157

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