Question
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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