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1 Analysis Exercise IV Part A: Weighted Average Cost of Capital (WACC) Here again is the formula for WACC. For simplicity the term for preferred

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1 Analysis Exercise IV Part A: Weighted Average Cost of Capital (WACC) Here again is the formula for WACC. For simplicity the term for preferred stock has been removed WACC = 1. Go to htt://thatswacc.com/l and enter the ticker symbolfor the stock you selected and click on the tab entitled "Calculate WACC." 2. Complete the following tables: Stock Name of C Ticker S Walmart WMT From the http://thatswacc.com/ results for your company: 2.71% 5.05% 40% WACC Cost of debt, iD Corporate tax rate, Tc Total Total e Total firm value, V Cost ofe 43,181,000 $86,999,886 $130,180,886 2.33%

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