FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 154

d. Wide variations in capital structures exist both between industries and
among individual firms within given industries. These differences are
caused by differing business risks and also managerial attitudes.
e. Since most stocks sell at or very close to their book values, book value
capital structures are almost always adequate for use in estimating firms'
costs of capital.
===============================================
FIN 534 Week 8 DQ 1
FOR MORE CLASSES VISIT
www.fin534rank.com
Week 8 discussion 1
I examined PepsiCo to determine how it should address its free cash
flow, either through distributions to shareholders or repurchasing of
stock.
===============================================