Demonstrate wal-marts wacc and capital structure

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Reference no: EM132494705

Question: Demonstrate Wal-Mart's WACC & Capital Structure (show the calculations). Then write 1-2 paragraphs about factors that would affect the capital structure. Cite accordingly. Tell us how this calculation is important to the company and the investors.

Wal-Mart's Capital Structure:

Wal-Mart's capital structure consists of both Debt, and Equity.

Wal-Mart's WACC:

To calculate weighted average cost of capital we have the following equation;

WACC = wd*kd(1-T)+ws*ks ------------ (1)

Where "wd" stands for Weight of debt and "ws" stands for weight of equity

"Kd" stands for cost of debt and "ks" stands for cost of equity.

kd (1-T) is after tax cost of debt

Reference no: EM132494705

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