|
|
| Input Data (Millions Except Per Share Data) | | | | Source |
| Tax rate | | | 30.92% |
| Debt (D) | | | $42,018,000,000 | Morningstar Bonds + 10K Note 5 | | 42,018 | (Long-term debt and long-term capital lease and financing obligations) |
| Number of common shares (n) | | | 2,987,000,000 | Google Finance | | | https://ycharts.com/companies/WMT/shares_outstanding |
| Stock price per share (P) | | | $80.08 | Wall Street Journal | | | (Yahoo Finance) |
| Capital Structure (Millions Except Per Share Data) |
| Market value of equity (S = P ´ n) | | | $239,198,960,000 |
| Total value (V = D + S) | | | $281,216,960,000 |
| Percent financed with debt (wd = D/V) | | | 14.9415% |
| Percent financed with stock (ws = S/V) | | | 85.0585% |
| Cost of Capital |
| Cost of debt (rd) | | | 2.78% | Morningstar Bonds Weighted cost of debt |
| Beta (b) | | | 0.27 | Beta from 5 years data |
| Risk-free rate (rRF) | | | 2.77% | 30 Year Treasury Yield, WSJ, 4/5/13 | https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield |
| Market Return (Rm) | | | 11.69% |
| Market risk premium (RPM) | | | 8.92% |
| Cost of equity from CAPM (rs = rRF + b ´ RPM ) | | | 5.19% |
| Cost of Equity from Dividend Growth Model |
| Future Dividend Growth Rate | | | 6.50% |
| 2012 Dividend $ | | | 1.4600 |
| Share Price $ (1/1/2012) | | | $ 52.83 |
| Cost of Equity from Dividend Growth Model | | | 9.44% |
| Cost of Equity from Bond Plus Markup |
| Cost of debt | | | 2.78% |
| Risk Markup | | | 7.31% |
| Cost of Equity from Bond Plus Markup | | | 10.10% |
| Average rs | | | 8.2% |
| WACC | | | 7.30% |