Question
How to determine WACC for AMAZON or WALMART. I do not need you to do this assignment for me, I simply just need the correct
How to determine WACC for AMAZON or WALMART. I do not need you to do this assignment for me, I simply just need the correct information to input into these equations. I have been searching the internet and am SO confused. If anyone can send me a link to where I can locate the information to do the WACC calculation that would be very helpful.
Select a publicly traded company that has debt or bonds and common stock to calculate the current WACC.
Assumptions:
As you recall, the formula for WACC is:
rWACC = (E/E+D) rE + D/(E+D) rD (1-TC)
The formula for the required return on a given equity investment is:
ri= rf + i * (RMkt-rf)
RMkt-rf is the Market Risk Premium. For this project, you may assume the Market Risk Premium is 5% unless you can develop a better number.
rf is the risk free rate. The risk free rate is normally the yield on US Treasury securities such as a 10-year treasury. For this assignment, please use 3.5%.
You may assume a corporate tax rate of 40%.
Submit the following:
Your calculated WACC.
How data was used to calculate WACC. This would be the formula and the formula with your values substituted.
Sources for your data.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started