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Walmart Wacc Essay Example

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Walmart Wacc Essay Example
Rate of Return of a Market Index
11%

WAL-MART 2009
Company Risk Premium
2.88%

-

Risk – Free Rate
3%
+
Beta Coefficient
.36
Market Risk Premium
8%

Cost of Equity
5.88%
+
Risk - Free Rate
3.%

Weighted Cost of Equity
3.52%
X
Percentage of Total Capital Supplied by Equity
60%

+
Before Tax Cost of Debt
5.66%
WACC
5..00%

Weighted Cost of Debt
1.53%
Before Tax Operating Profit in %
100%
After Tax Cost of Debt
3.83%

X
X
After Tax Operating Profit in 67.6%

40% of Total Capital Supplied by Debt
40%
-
Income Tax Rate
32.4%

Rate of Return of a Market Index
11%

WAL-MART 2008
Company Risk Premium
2.88%
-

Risk – Free Rate
3%
+
Beta Coefficient
.36%
Market Risk Premium
8%

Cost of Equity
5.88%
+
Risk - Free Rate
3.%

Weighted Cost of Equity
3.52%
X
Percentage of Total Capital Supplied by Equity
60%

+
Before Tax Cost of Debt
5..05%
WACC
4.88%

Weighted Cost of Debt
1..36%
Before Tax Operating Profit in %
100%
After Tax Cost of Debt
3.41%

X
X
After Tax Operating Profit in 67.6%

40% of Total Capital Supplied by Debt
40%
-
Income Tax Rate
32.4%

Rate of Return of a Market Index
11%

WAL-MART 2007
Company Risk Premium
2.88%

-

Risk – Free Rate
3%
+
Beta Coefficient
.36
Market Risk Premium
8%

Cost of Equity
5.88%
+
Risk - Free Rate
3.%

Weighted Cost of Equity
3.52%
X
Percentage of Total Capital Supplied by Equity
60%

+
Before Tax Cost of Debt
5..05%
WACC
4.88%

Weighted Cost of Debt
1..36%
Before Tax Operating Profit in %
100%
After Tax Cost of Debt
3.41%

X
X
After Tax Operating Profit in 67.6%

40% of Total Capital Supplied by Debt
40%
-
Income Tax Rate
32.4%

El WACC de Wal-mart ha aumentado debido aprestamos adicionales que ha tomado en eso ultimo tres años.

JCP 200Rate of Return of a Market Index
11%

Company Risk Premium
15.2%

-

Risk – Free Rate
3%
+
Beta Coefficient
1.9%
Market Risk Premium

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