Estimate how pepsicos value would have changed in 2003

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Estimate how PepsiCo's value would have changed in 2003 if it had announced that it planned to increase its debt-asset target by an additional 5% and that it would use the generated funds to repurchase equity.

Assume that corporate income taxes are the only market imperfection and that its marginal tax rate would not have been affected.

Reference no: EM131241290

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