***** DUE IN 12 HOURS!!!
In this project, the student will find and discern the appropriate data to determine a realistic assessment of the weighted average cost of capital for a firm of his/her choosing.
The student will need to search for data from several sources, use subjective judgment to determine which data to use or discard, use subjective judgment to determine which calculation gives a more acceptable estimate and make some simplifying assumptions.
The purpose of the projects is to show some of the sources of measurement errors in financial analysis, to introduce the diverse sources of publicly available financial information and to develop skill in analysis in situations where there are too much or too little data.
My chosen company is Wal-Mart and all data is attached. You need to write 6-8 pages report that explain the provided data and the insights that we have gotten and how did we get them or what do they mean. It should be a full report with introduction, body and conclusion.
The organization of the paper should be as follows:
Introduction
Equation with data and descriptions:Pages showing equations with data and brief description. Detailed descriptions, tables of data and excel sheets etc will be in the appendix.
Cost of Equity (Common Stock
Beta from Regression and two Betas from analysts
Beta Chosen for CAPM and why
Capital Assets Pricing Model (include how determined RF and[ RM or (RM – RF)]
Discounted Cash Flow (DCF) (only if dividends – include how determined growth rate)
Own-Bond-Yield-plus-Judgmental-Risk-Premium (include how determine risk premium)
Cost of Preferred Stock
Cost of Debt (make sure to include table that lists all bond issues with weighted average cost of debt)
Market Value of Debt (will have calculated above, but will need to add any long term leases from balance sheet to get total market value of debt)
Market Value of Equity
13. Market Value of Preferred Stock
Value of Firm
Firm’s Tax Rate (explain how determined)
Weight for Equity
Weight for Preferred Stock
Weight for Debt
WACC (Weighted Average Cost of Capital)
Conclusion
Assumptions: including but not limited to RF , RM, Rm – RF. growth rate of dividends. This page should have a brief description of how you came up with the estimates with spreadsheets, etc. to be put in the appendix.
Appendix: Appendix should include all relevant data including debt data from Morningstar, calculations of weighted average cost of debt, stock returns, betas from analysts, beta regression analysis, method/sourcing for RF and RM, growth rates for dividends, different methods to determine tax rates, etc.
References
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more