Financial Management: Weighted Average Cost of Capital (WACC)
For the following two stocks:
Walmart (WMT): https://finance.yahoo.com/quote/WMT?p=WMT&.tsrc=fin-srch
Home Depot (HD): https://finance.yahoo.com/quote/HD?p=HD&.tsrc=fin-srch
You may access the following financial websites:
Yahoo Finance
https://finance.yahoo.com/quote/WMT/
CNN Business
https://money.cnn.com/quote/financials/financials.html?symb=WMT
Gurufocus
https://www.gurufocus.com/stock/WMT/summary
Instructions
Group Assignment 2
Refer Text: Chapter 10 in attachment Fundamentals of Financial Management
Refer attachment Handout: Reference under “Group Assignment 2”
For the following two stocks:
Walmart (WMT) and
Home Depot (HD)
You may access the following financial websites:
Yahoo Finance
https://finance.yahoo.com/quote/WMT/
CNN Business
https://money.cnn.com/quote/financials/financials.html?symb=WMT
Gurufocus
https://www.gurufocus.com/stock/WMT/summary
Requirements: Need to calculate Weighted Average Cost of Capital (WACC) for both the above stocks***
In Yahoo finance for the stock in reference, go to “Financials” in the menu options, and then “Balance Sheet” and for the last two recent years, get values of Total Debt, Total Equity (use market capitalization (# Shares issued * Share Price) from “Summary” tab.
Need to determine Cost of Debt and Cost of Equity.
Determine Weight of Debt and Weight of Equity.
***Summarize your findings of WACC for both of them Walmart and Home Depot for the last two years.****
*****The summary findings can be 1-2 pages. This is the portion that is needed along with the one page summary.********
***The one page summary can also include the calculated weighted Average Cost of Capital (WACC) for both the above stocks (Walmart and Home Depot over the last two years).****
Gurufocus estimated WACC for Walmart: https://www.gurufocus.com/term/wacc/WMT/WACC/Walmart%2BInc
Gurufocus estimated WACC for Home Depot:https://www.gurufocus.com/term/wacc/NYSE:HD/WACC-/The-Home-Depot
