Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, My name is Diana I wanted to see if you can help by with a Finance Assignment? The assignment will be based on company

image text in transcribed

Hello,

My name is Diana I wanted to see if you can help by with a Finance Assignment? The assignment will be based on company Walmart.

Please let me know if you thank y..a@gmail.com

image text in transcribed Part One Select a U.S. S&P 500 Company required to submit either 8-K, 10-Q, or 10-K U.S. Securities and Exchange Commission (SEC) reports. Before proceeding to Part Two, submit your firm selection to your instructor and obtain approval; completing this assignment without instructor approval will result in zero points for this assignment. Part Two Upon approval of your selected firm, use the most recent financial reports of the chosen firm to calculate the intrinsic value of the stock. For this assignment, you will use two valuation methods to derive the firm's intrinsic value; an equity valuation model (specified below) and the free cash flow (FCF). The following guidelines apply: 1 Go to https://www.treasury.gov and obtain the most recent 10-year Treasury yield rate as the risk-free rate; 2 Go to either Yahoo Finance or Google Finance to obtain the selected firm's current beta ( or beta coefficient); 3 Assume the expected market return is 10%; 4 Use the capital asset pricing model (CAPM) to calculate the required rate of return for equity financing purposes; 5 Make a realistic assumption about the g growth rate (g) and apply either a) the dividend growth model or b) nonconstant dividend growth model equity valuation methods to calculate the intrinsic value of the firm. (Note: If using the nonconstant growth model you must show a minimum of 5 years of future cash flows or future dividends); 6 Calculate the intrinsic value of the firm and stock price using the FCF valuation model. If the SEC filing provides the Weighted Average Cost of Capital (WACC), use the given WACC to value the firm and its intrinsic stock price. If the WACC is not provided, you must calculate the WACC finding necessary information to do so

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance and Investments

Authors: William Brueggeman, Jeffrey Fisher

14th edition

73377333, 73377339, 978-0073377339

More Books

Students also viewed these Finance questions