Question
TEST CH 5, 6 & WAAC - 100 POINTS (PART 2 - 32 POINTS - TAKE HOME) 12. (32 pts -4 each) Please value Costco
TEST CH 5, 6 & WAAC - 100 POINTS (PART 2 - 32 POINTS - TAKE HOME) 12. (32 pts -4 each) Please value Costco Wholesale Corporation using the attached information from Yahoo finance and the Company's August 28, 2022 financial statements. Please answer the following questions. Please use an expected market risk premium (on the stock market) of 7%. What is the weight of equity? What is the before tax cost of debt? What is the WACC? What is the estimated annual cash flow? What is the no growth estimated market value of the assets? What is the no growth estimated market value per share? What is the implied growth rate, based on the current market value? What is the estimated market value per share assuming a 1% projected growth rate?
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