Estimate the most current Cost of Debt and Total Market Value of Debt of Walmart Inc (ticker: WMT).

Suggested sources of the data:

1. SEC's Edgar database - for financial statements and annual or quarterly reports (10-K or 10-Q)
2. FINRA's TRACE database - for public bond yields and prices

Recipe:

1. Calculate the cost of debt using the most recent yields from a representative set of Walmart public bonds.
2. Calculate the market value of Walmart's debt using the book value of debt (from the annual report obtained from SEC Edgar) adjusted by the price-to-face value multiple of a set of public bonds of Walmart.
3. calculate weighted average yield weighting yields by market values of the bonds, where market values can be obtained by multiplying issue size by market-to-book (price to nominal face value) ratios

To calculate the estimate of the cost of debt:

To calculate financial statements and Balance Sheet

  
 

Transcribed Image Text:

WALMART INC Coupon Rate 7.550% Price/Yield Chart Price Chart Yield Chart 04/10/2018 - Price 2018 Maturity Date 02/15/2030 - 04/06/2023 2019 Additional Description Call Date Credit and Rating Elements Moody's Rating Standard & Poor's Rating TRACE Grade Default Bankruptcy Insurance Mortgage Insurer Pre-Refunded/Escrowed Put Date 2020 Put & Redemption Provisions Call Price Put Price Symbol WMT.GP 2021 Zoom: 5D 1M 3M YTD 1Y 3Y SY 10Y Max Trade History Last Trade Price Last Trade Yield Last Trade Date US Treasury $123.02 04/06/2023 Yield 3.710% 2022 Call Frequency Price $ 140.00 Put Frequency 120.00 CUSIP 931142BF9 100.00 Aa2 (10/13/2022) AA (02/10/2000) Investment Grade Senior Unsecured Note N Bond Type Next Call Date Callable Classification Elements Debt Type Industry Group Industry Sub Group Sub-Product Asset Sub-Product Asset Type State Use of Proceeds Security Code Special Characteristics Medium Term Note Issue Elements Offering Date Dated Date First Coupon Date Original Offering* Amount Outstanding* Series Issue Description Project Name Payment Frequency Day Count Form + ADD TO WATCHLIST Depository/Registration Security Level Collateral Pledge Capital Purpose *dollar amount in thousands Bond Elements Original Maturity Size* Amount Outstanding Size* Yield at Offering Price at Offering. Coupon Type Escrow Type *dollar amount in thousands US Corporate Debentures Senior Unsecured Note Industrial Retail CORP Corporate Bond N 02/09/2000 02/15/2000 08/15/2000 $1,000,000.00 $469,208.00 Semi-Annual 30/360 Book Entry Depository Trust Company Senior 1,000,000.00 469,208.00 7.56% $99.84 Fixed WALMART INC Coupon Rate 7.550% Price/Yield Chart Price Chart Yield Chart 04/10/2018 - Price 2018 Maturity Date 02/15/2030 - 04/06/2023 2019 Additional Description Call Date Credit and Rating Elements Moody's Rating Standard & Poor's Rating TRACE Grade Default Bankruptcy Insurance Mortgage Insurer Pre-Refunded/Escrowed Put Date 2020 Put & Redemption Provisions Call Price Put Price Symbol WMT.GP 2021 Zoom: 5D 1M 3M YTD 1Y 3Y SY 10Y Max Trade History Last Trade Price Last Trade Yield Last Trade Date US Treasury $123.02 04/06/2023 Yield 3.710% 2022 Call Frequency Price $ 140.00 Put Frequency 120.00 CUSIP 931142BF9 100.00 Aa2 (10/13/2022) AA (02/10/2000) Investment Grade Senior Unsecured Note N Bond Type Next Call Date Callable Classification Elements Debt Type Industry Group Industry Sub Group Sub-Product Asset Sub-Product Asset Type State Use of Proceeds Security Code Special Characteristics Medium Term Note Issue Elements Offering Date Dated Date First Coupon Date Original Offering* Amount Outstanding* Series Issue Description Project Name Payment Frequency Day Count Form + ADD TO WATCHLIST Depository/Registration Security Level Collateral Pledge Capital Purpose *dollar amount in thousands Bond Elements Original Maturity Size* Amount Outstanding Size* Yield at Offering Price at Offering. Coupon Type Escrow Type *dollar amount in thousands US Corporate Debentures Senior Unsecured Note Industrial Retail CORP Corporate Bond N 02/09/2000 02/15/2000 08/15/2000 $1,000,000.00 $469,208.00 Semi-Annual 30/360 Book Entry Depository Trust Company Senior 1,000,000.00 469,208.00 7.56% $99.84 Fixed

Answer rating: 100% (QA)

Here are the full workings 1 Looking up yields of Walmart public bonds on FINRA TRACE WMT 235 bond m... View the full answer