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Question 2 - Calculate the cost of equity for WMT given the following information. Use the DGM and CAPM. Then find the market value of
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) 8,000 Common stock Shares outstanding Beta Share price ($) Dividend Market Market risk premium Risk-free rate 5.0% 1.20 1.5% 125.93 $ $ 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 DGM CAPM Avg. cost of equity MV of Equity 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) 8,000 Common stock Shares outstanding Beta Share price ($) Dividend Market Market risk premium Risk-free rate 5.0% 1.20 1.5% 125.93 $ $ 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 DGM CAPM Avg. cost of equity MV of Equity
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