Walmart is considering changing the current capital structure to 40% debt and 60% equity, how would this
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Beta = 0.53
Risk Free Rate = 1.95%
Average Market Rate of Return = 8%
Equity Risk Premium = 6.05%
Market Value of Debt = $48, 644, 000, 000
Cost of Debt = 4.06%
Weight of Debt = 10.91
Market Value of Equity = $397, 054, 230, 220
Weight of Equity = 89.09%
Cost of Equity = 5.16%
Market Value of Company = $445, 698, 230, 220
Effective Tax Rate = 24.48%
WACC = 4.93%
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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