Calculate the wacc for the company-using cost of debt

Assignment Help Financial Management

Reference no: EM131935548

Use Yahoo finance to access financial statements of two of the following companies (your choice), Facebook (FB) and Walmart(WMT) for 2016 and answer the following questions for companies you have selected:

Use CAPM to calculate the cost of equity for the company, using the Beta provided by Yahoo. Assume market risk premium of 8%. (continued below)

Calculate the WACC for the company, using cost of debt = (interest expense)/(total debt)

What is the payout policy of the company?

What were the financing and investing activities of the company in 2016: capital expenditures, issuing stocks or borrowings, total dividend payout?

Reference no: EM131935548

Questions Cloud

The present value of a perpetual tax shield increases : The present value of a perpetual tax shield increases as the firm’s tax rate _____ and the amount of principal _____

Discounted cash flow project analysis : A 5-year discounted cash flow project analysis for building a smoothie factory should take into account which of the following:

Financially benefit due to high frequency trading : Which of the following financially benefit due to High Frequency Trading? WHY?

Calculate the earnings per share and price-earnings ratio : Calculate the earnings per share and price-earnings ratio for Exxon Mobil and ConocoPhillips.

Calculate the wacc for the company-using cost of debt : Calculate the WACC for the company, using cost of debt = (interest expense)/(total debt)

Used in the foreign country using the foreign currency : What discount rate should be used in the foreign country using the foreign currency?

What are expected dividend yield and capital gains yield : what would be the expected dividend stream over the next 3 years? what are expected dividend yield, capital gains yield, and total return during the first year.

What is the definition of net present value : What is the definition of net present value? The net present value helps determine what?

What is the most that you should be willing to pay for stock : If they pay an annual dividend of $3.75 and your required return is 9 percent, what is the most that you should be willing to pay for the stock?

User Account

All Pages