As of february 2010 what is your assessment of the worth of


1) As of February 2010, what is your assessment of the worth of Wal-Mart stock?

Utilize all methods discussed in the case to value the shares, including the following:

A) The perpetual growth individends. The case discusses an alternative method in

which the payout ratio can be used in calculating the growth rate. Please feel free to ignore that modification and assume that all earnings are paid out as dividends.

B) Forecasted dividends for the next several years pl us the sale of the stock in the future

C) Multi-stage dividend model (i.e., supernormal growth and then constant growth)

D) The price/earnings approach

Clearly state any assumptions. As a refresher from your core finance class, the discount rate (or cost of equity) is calculated by taking the risk free rate and adding that to the product of the market premium multiplied by Beta: KE= RF+ E(RM) x ?

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Financial Management: As of february 2010 what is your assessment of the worth of
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