Explore BrainMass

Explore BrainMass

    Valuation Model

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Make a recommendation as to which valuation model would serve best. Please see attached.

    © BrainMass Inc. brainmass.com May 20, 2020, 5:00 pm ad1c9bdddf


    Solution Preview

    The most accurate model to use would probably be the variable growth model. This is because Wal-mart is in a growth state right now. Thus it is very likely that it will grow at a much higher rate at least for the next 4-5 years. It is even likely that this growth rate will exceed Wal-mart's cost of capital making the constant growth model invalid. Thus, I would suggest that we use the variable growth model. For the next 5 ...

    Solution Summary

    The solution answers the question below and goes into quite a bit of detail regarding the valuation model. An excellent response to the question being asked.