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Estimate Walmart's approximate WACC; use the most recent year's debt ratio to find the weights of debt and equity. If Walmart issues preferred stock, for

Estimate Walmart's approximate WACC; use the most recent year's debt ratio to find the weights of debt and equity. If Walmart issues preferred stock, for simplicity's sake, ignore it. The cost of debt will be the approximate YTM calculated in Week 5. Use CAPM to calculate Walmart's required rate of return on the stock. The beta was determined in Week 6; use the current 10-year Treasury bonds' YTM as the risk-free rate. Using a reliable source, research the current market's expected rate of return (for example, the S&P 500). Be sure to mention all the reference sources.

Week 6 information:

1. The stock has appreciated in the past three years.

2. The stock's highest price was $131.75 on April 16, 2020.

The stock's lowest price was $68.34 on July 10, 2017.

3. Yes, Walmart's Stock pays a dividend.

The stock has appreciated in the past three years. On June 12, 2017, the stock price was $79.24 which increased to $121.35 on June 09, 2020. The price of the stock increased by $42.11 in the past three years showing an increase of 53.14%.

The stock's highest price was $131.75 on April 16, 2020.

The stock's lowest price was $68.34 on July 10, 2017.

Yes, Walmart's Stock pays a dividend. They pay quarterly dividends. In the year 2017-18, the quarterly dividend was $0.52, in 2018-19 the quarterly dividend was $0.53, in 2019-20 the quarterly dividend was $0.54. It comes to an annual dividend of $2.08 in the year 2017-18, $2.12 in the year 2018-19, and 2.16 in the year 2019-20. In the year 2018-19, the dividend increased by 1.92% and in 2019-20 it increased by 1.89%.

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