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AMZN HD WMT Risk-Free Rate 2.40% 2.40% 2.40% Market Risk Premium 8.00% 8.00% 8.00% Beta 1.45 1.15 0.40 Long-term Bond Yield 3.70% 3.85% 3.55% Average
AMZN | HD | WMT | |
Risk-Free Rate | 2.40% | 2.40% | 2.40% |
Market Risk Premium | 8.00% | 8.00% | 8.00% |
Beta | 1.45 | 1.15 | 0.40 |
Long-term Bond Yield | 3.70% | 3.85% | 3.55% |
Average Tax Rate | 38% | 37% | 32% |
MV Debt Capital | $17,495 | $27,141 | $52,829 |
MV Equity Capital | $355,438 | $164,784 | $214,341 |
WACC | |||
compute the WACC for each of the three companies (Amazon, Walmart and Home Depot). You will need to compute the cost of debt capital and the cost of equity capital from the information provided. Determine the weighted average cost of capital from the capital structure data given.
Do the computation in the Excel file, show the formula. and then Interpret the results
Interpret the results in the WRITE SUBMISSION box. You are comparing and contrasting the results for the three companies.
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