Question 1 - Walmart (WMT) has the following three bonds outstanding. First, calculate the YTM for each bond in the table (Use the YIELD function). Then fill in the rest of the table and calculate the market value of the debt to determine the overall cost of debt for the company. (10 points) Bond A Settlement date Maturity date 01/01/19 01/01/23 500,000 Bond C Settlement date Maturity date 01/01/20 01/01/27 450,000 5.01% 01/01/21 01/01/45 300,000 Book value of bonds Bond B Settlement date Maturity date Book value of bonds Annual coupon rate Face value % of par) Coupons per year Bond price (% of par) Book value of bonds 3.71% 8.95% 100.00 100.00 100.00 Annual coupon rate Face value (% of par) Coupons per year Bond price (% of par) Annual coupon rate Face value % of par) Coupons per year Bond price (% of par) 2 2 2 98.28 101.32 105.92 Quoted Price Market Value Weight Bond YTM Book Value Market Value Weighted YTM 3.71% 98.28 500.000 491,400.00 B 5.01% 101.32 $ $ $ 450,000 300,000 455,940.00 8.95% 105.92 317,760.00 Tax rate: 27.0% After tax cost of debt: Question 2 - Calculate the cost of equity for WMT given the following information. Use the DGM and CAPM. Then find the market value of equity. (10 points) Common stock Shares outstanding 8,000 Market Market risk premium Risk-free rate - 5.0% Beta 1.20 1.5% Share price ($) 125.93 $ $ Dividend 3.90 Growth Rate 4.10% Cost of equity Question 1 - Walmart (WMT) has the following three bonds outstanding. First, calculate the YTM for each bond in the table (Use the YIELD function). Then fill in the rest of the table and calculate th DGM CAPM 0001 Avg. cost of equity MV of Equity Question 3 - Calculate the cost of preferred stock and weighted average cost of capital for WMT given the following information. (10 points) 150,000.00 Preferred stock MV of shares Coupon amount Share price ($) $ $ $ 4.50 75.20 Cost of Pref Weight of debt Weight of equity Weight of pref CON WACC