You will be completing an analysis on Walmart and Target as if you were recommending stock purchase to your clients.

C. Part II ( 40%/ of total project grade ) 1 . Required rate of return ( Equity Financing ) . Use the CAPMI to determine required rate of return for equity financing . ` Estimate the expected market return ( use two methods). Calculate the market risk premium . } Calculate betas by regression analysis . 2. Required rate of return ( Debt Financing ) Use financial statement to determine required return for debt Financing . } Cost of debt = interest expense / total liabilities . 3 . Cost of capital Find average tax rate and capital structure of each company . Calculate each company's WALL 4. Overall recommendations and conclusion* Issue your recommendations for both Firms in short - term ('1 year ; and long-term ( 3 years ) . buy , hold or sell . . Use all the information in this report to make your recommendations