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4. (10 pts) The following information relates to Walmart Inc. (WMT): Current market price of common stock $105.00 1-Year target estimate $130.00 10-Year Treasury bond

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4. (10 pts) The following information relates to Walmart Inc. (WMT): Current market price of common stock $105.00 1-Year target estimate $130.00 10-Year Treasury bond rate 1.00% Market risk premium 5.50% Dividends per share of common stock $2.16 Earnings per share $5.19 Beta for Walmart Inc. .43 Tools Required: a) Determine the expected rate of return, if the stock is held for one year. b) Determine the required rate of return. c) Based on your answers to parts (a) and (b), explain whether or not you would recommend to purchase Walmart's common stock. d) Compute Walmart's P/E ratio from the information provided above. Explain what the P/E ratio indicates

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