How should dale and lee estimate the cost of long debt

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ASSIGNMENT QUESTIONS

Case - ESTIMATING WALMART'S COST OF CAPITAL

Question 1. Explain what is the cost of capital. Why do Dale and Lee care about the cost of capital.

Question 2. How should Dale and Lee estimate the cost of long debt.

Question 3. If Walmart had preferred shares or planned to issue prefeered shares, how would Dale Lee with

Question 4. Suggest how should Dale and Lee deal with deferred taxes?

Question 5. How might Dale and Lee estimate the cost of equity?

Question 6. What is overall weighted average cost of capital ?

Question 7. How does all of this relate to hurdle rates that Walmart might use.

Reference no: EM133457714

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