Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Looking at all the financial info for each of the three companies, identify one important strategic recommendation for each and explain why it's important and

Looking at all the financial info for each of the three companies, identify one important strategic recommendation for each and explain why it's important and how it will help that company improve its financial performance

image text in transcribed

Book 1 Q- Search Sheet Home Insert Draw Page Layout Formulas Data Review View 2+ Share a X Cut AutoSum Calibri (Body) - 12 ) A- A 0 Wrap Text General - Copyr Fill Paste U U. A. - A - Merge & Center $ . % ) 09 Insert Dalata Conditional Format Call Formatting as Table Styles Format Format Clear Sort & Filter Find & Select E34 XV for fix B C F F G I J K D Costco Wholesale Corporation (COST) H 243.71 138.79 532.85 Target Corporation (TGT) 0.04 0.60 0.05 0.01 0.90 384.916.80 427932.80 0.01 0.02 0.69 0.10 43.016.00 427.932 Cost of Equity 3y Adjusled Bela * Market Risk Premium +10y Risk Free Rate - Weight of Equity Fully Diluted Market Cap / Total Capitalization + After Tax Cost of Debt Cost of Debt 1. Ellective Tax Rale (3y Avg) - Weight of Debt Total Debt net ITM Convertible Debt /Total Capitalization + Cost of Preferred "Weight of Preferred + Preferred Equity net ITM Convertible Pid /Total Capitalization Weighled Avg Cast of Capital (WACC) 0.05 0.72 0.05 0.01 0.97 235,994.20 243 485.20 0.01 0.01 0.78 0.03 7,491.DD 243,485.20 Cost of Equity 3y Adjusted Bela Market Risk Premium + 1Dy Risk Free Rate Wright of Equity Fully Diluted Market Cap Total Capitalizacion + After Tax Cost of Debt Cost of Debt 1 - Effective Tax Rate (3y Avg) * Weight of Debt Total Debt net ITM Convertible Debt Total Capitalization + Cost of Preferred Weight of Preferred + Preferred Equity net ITM Convertible / Total Capitalization Weighted Avg Cost of Capital (WACC) 0.05 0.75 0.05 D.01 0.90 120,476.90 133,238.00 0.01 0.02 0.79 0.10 12,762.DD 133,238.90 427932.80 0.04 243,485,20 0.05 133,238.00 0.05 A i Walmart Inc. (WMT) 2 3 Cost of Equity 3 4 4. 3y Adjusted Bela 5 * Market Risk Premium 6 + 10y Risk Free Rate + 7 Weight of Equity 8 8 Fully Diluted Market CAP 9 / Total Capitalization 10 + Aftor Tax Cost of Debt 11 Cost of Debt 12 "1- Effective Tax Rale By Avg) 13 Weight of Debt 14 Total Debt net ITM Convertible Debt 15 Total Capitalization 16 + Cost of Preferred 17 Weight of Preferred 18 + Preferred Equity net ITM Convertible Pid 19 Total Capitalization 20 Weighted Avg Cost of Capital (WACC) 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 47 Sheet1 + Ready # EP - 2 + 100% % Book 1 Q- Search Sheet Home Insert Draw Page Layout Formulas Data Review View 2+ Share a X Cut AutoSum Calibri (Body) - 12 ) A- A 0 Wrap Text General - Copyr Fill Paste U U. A. - A - Merge & Center $ . % ) 09 Insert Dalata Conditional Format Call Formatting as Table Styles Format Format Clear Sort & Filter Find & Select E34 XV for fix B C F F G I J K D Costco Wholesale Corporation (COST) H 243.71 138.79 532.85 Target Corporation (TGT) 0.04 0.60 0.05 0.01 0.90 384.916.80 427932.80 0.01 0.02 0.69 0.10 43.016.00 427.932 Cost of Equity 3y Adjusled Bela * Market Risk Premium +10y Risk Free Rate - Weight of Equity Fully Diluted Market Cap / Total Capitalization + After Tax Cost of Debt Cost of Debt 1. Ellective Tax Rale (3y Avg) - Weight of Debt Total Debt net ITM Convertible Debt /Total Capitalization + Cost of Preferred "Weight of Preferred + Preferred Equity net ITM Convertible Pid /Total Capitalization Weighled Avg Cast of Capital (WACC) 0.05 0.72 0.05 0.01 0.97 235,994.20 243 485.20 0.01 0.01 0.78 0.03 7,491.DD 243,485.20 Cost of Equity 3y Adjusted Bela Market Risk Premium + 1Dy Risk Free Rate Wright of Equity Fully Diluted Market Cap Total Capitalizacion + After Tax Cost of Debt Cost of Debt 1 - Effective Tax Rate (3y Avg) * Weight of Debt Total Debt net ITM Convertible Debt Total Capitalization + Cost of Preferred Weight of Preferred + Preferred Equity net ITM Convertible / Total Capitalization Weighted Avg Cost of Capital (WACC) 0.05 0.75 0.05 D.01 0.90 120,476.90 133,238.00 0.01 0.02 0.79 0.10 12,762.DD 133,238.90 427932.80 0.04 243,485,20 0.05 133,238.00 0.05 A i Walmart Inc. (WMT) 2 3 Cost of Equity 3 4 4. 3y Adjusted Bela 5 * Market Risk Premium 6 + 10y Risk Free Rate + 7 Weight of Equity 8 8 Fully Diluted Market CAP 9 / Total Capitalization 10 + Aftor Tax Cost of Debt 11 Cost of Debt 12 "1- Effective Tax Rale By Avg) 13 Weight of Debt 14 Total Debt net ITM Convertible Debt 15 Total Capitalization 16 + Cost of Preferred 17 Weight of Preferred 18 + Preferred Equity net ITM Convertible Pid 19 Total Capitalization 20 Weighted Avg Cost of Capital (WACC) 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 47 Sheet1 + Ready # EP - 2 + 100% %

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

HBR Guide To Finance Basics For Managers

Authors: Harvard Business Review

1st Edition

1422187306, 978-1422187302

More Books

Students also viewed these Finance questions

Question

Define Scientific Management

Answered: 1 week ago

Question

Explain budgetary Control

Answered: 1 week ago

Question

Solve the integral:

Answered: 1 week ago

Question

What is meant by Non-programmed decision?

Answered: 1 week ago