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Please solve all parts completely: 2. You observe the following data for Walmart (WMT) stock: Walmart Stock Price per share Earnings per share Dividend per
Please solve all parts completely:
2. You observe the following data for Walmart (WMT) stock: Walmart Stock Price per share Earnings per share Dividend per share Average daily share volume Return on equity Beta Volatility Risk-free return Expected market excess return $145 $3.55 $2.20 7,700,000 12.30% 0.48 16.40% 0.40% 6% a. Estimate Walmart's earnings growth rate. b. Estimate an alpha forecast for Walmart stock. Justify your calculation. c. Let's assume that based on your alpha forecast, you decide to purchase 750,000 shares of Walmart. What is the expected price impact of your trade? You can assume that trading one day's volume costs one day's volatility Step by Step Solution
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