Question
Read the case study, Valuing Wal-Mart Stock from the Harvard Business written by Professor Stephen R. Foerster in 2006. In your case study analysis, answer
Read the case study, "Valuing Wal-Mart Stock" from the Harvard Business written by Professor Stephen R. Foerster in 2006. In your case study analysis, answer all elements of the following questions. Use stock valuation information from the case only, not current information available online. Determine the intrinsic value of Wal-Mart (on a per share basis) using the constant growth version of the dividend discount model (DDM). Develop your r or cost of capital using the Capital Asset Pricing Model and information from the case and exhibits (show your work). Discuss some of the inherent assumptions of this model and their applicability to Wal-Mart at this point.
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