Go to gurufocus.com to find the weighted average cost of capital for PepsiCo, Inc. (PEP)...

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Accounting

Go to gurufocus.com to find the weighted average cost of capital for PepsiCo, Inc. (PEP) Required:

a) Explain how the WACC is calculated.

b) Explain the WACC in the context of a hurdle rate, return on invested capital (ROIC), an optimal capital structure, and an optimal capital budget.

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