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Using the Walmart's Estimating Cost of Capital Case Study What is the after-tax cost of debt? Market value: Short-term interest bearing debt ________ use book

Using the Walmart's Estimating Cost of Capital Case Study

What is the after-tax cost of debt?

Market value: Short-term interest bearing debt ________ use book value as proxy for market value

Market value: Long-term interest bearing debt _________ apply the current price of the 2030 bond to calculate the market value for all of the long-term debt

Cost of debt (calculate the YTM for the Walmart 2030 bond)

Time to maturity _______

Coupon payment __________

Current price ___________

Face value ________

Tax rate _________

Pre-tax cost of debt _______________

After-tax cost of debt __________________

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