Financial Management: Weighted Average Cost of Capital (WACC) for both Walmart and Home Depot
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
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 for the last two years.
Compare your computations of WACC for both of them against online estimates (Gurufocus):
Gurufocus WACC estimate forWalmart
https://www.gurufocus.com/term/wacc/WMT/WACC-Percentage/Walmart
Gurufocus WACC estimates for Home Depot
https://www.gurufocus.com/term/wacc/HD/WACC-Percentage/The-Home-Depot
