Purchase Solution

Wal-Mart: Cost of Equity, WACC, Unlevered Cost of Equity, & Beta

Not what you're looking for?

Ask Custom Question

Estimate the cost of equity, WACC, and unlevered cost of equity for Wal-Mart, Incorporated (NYSE: WMT).

Find the beta for Wal-Mart and:
1. Estimate Wal-Mart's cost of equity.
2. Estimate Wal-Mart's weighted-average cost of capital (WACC).
3. Estimate Wal-Mart's unlevered cost of equity.

Purchase this Solution
Solution Summary

The cost of equity, WACC, unlevered cost of equity and beta are determined for WalMart.

Solution Preview

According to Yahoo! Finance, Wal-Mart's beta is 0.24.
Cost of equity = 10.13%
WACC = ...

Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

View More Free Quizzes
Related BrainMass Solutions

  • What is WACC, current beta, Unlevered beta?

    b) What is the current beta on Bloom's common stock c) What would Bloom's beta be if the company had no debt in its capital structure Using CAPM, Cost of Equity = Risk Free rate + Beta * Market Risk Premium WACC = Weightage of Equity * Cost of Equity

  • Google: Estimate cost of equity, WACC, beta

    437402 Google: Estimate cost of equity, WACC, beta, unlevered cost of capital Estimate the cost of equity, WACC, and the unlevered cost of equity. Using the company Google Inc: 1. Find the beta for your company use this Web site. 2.

  • WACC

    An all equity firm uses the unlevered beta of 0.8 and you get a WACC same as the cost of equity, since there is no debt.

  • Cost of Capital

    An all equity firm uses the unlevered beta of 0.75 and you get a WACC same as the cost of equity, since there is no debt.

  • Cost of Capital - for Kraft Foods organization (KFT)

    (Source: www.reuters.com) Hence, Cost of Kraft Foods equity is: 2. What is the organization's asset beta (its unlevered equity beta)?

  • Finance: Weighted average cost of capital.

    Using the CAPM approach, what is the best estimate of the cost of equity for Wal-Mart Stores? 2. What is the best estimate for the weights to be used when calculating the WACC for Wal-Mart Stores? 3.

  • WACC

    We first calculate the unlevered beta and then lever the beta with the new debt by equity Beta unlevered = Beta levered/(1+(1-T) D/E) = 1.8/(1+(1-0.3) 0.3/0.7) = 1.38 The new levered beta with Debt of 20% and Equity of 80% is Beta levered = Beta unlevered

  • Estimate: Cost of Equity, WACC and Unlevered Cost of Equity

    229697 Estimate: Cost of Equity, WACC and Unlevered Cost of Equity Estimate the cost of equity, WACC, and unlevered cost of equity. Use Costco wholesale corporation for this task.

  • Pre and Post acquistion calculations

    Using the CAPM equation, the cost of equity is Cost of Equity = Rf + (Rm-Rf) X beta Rf = T-Bill Rate = 5% (Rm-Rf) = Market Risk Premium = 10% Beta = 1.16 Cost of equity = 5% + 10%X1.16 = 16.6% (b) What is Sesame Street's unlevered equity Beta?

View More Related Solutions