Financial Management: Weighted Average Cost of Capital (WACC) for both Walmart and Home Depot
Intital Instructions:
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 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
Submit analysis, summarizing your key findings as a Word document
As mentioned in the initial instructions “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 from “Summary” tab.”
The attached spreadsheet are the calculations which provided the summary for Walmart and Home Depot for 2021 and 2022. confirm if the calculations are correct, if needed please provide an updated spreadsheet.
review attached paper for any discrepancies in calculations.
This could be noted on separate tab in the spreadsheet. Please let me know if anything else is needed.
