Incremental cost of capital

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Reference no: EM132058678

Walmart has sales of $1 million, EBIT of $125K, Amortization of $15K and with a 40% tax rate after tax NOPAT of $84K. Invested capital is $1 million thus ROIC is a sub-par 8.4% yet RONA is about 16.8% how is this possible?

If your incremental cost of capital is 10% would you invest in growth? Why or why not?

Reference no: EM132058678

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Shares of common stock does stephenson have outstanding : How many shares of common stock does Stephenson have outstanding? What is the price per share of the firm’s stock?

Issue debt or equity to finance the land purchase : If Stephenson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain.

Construct stephenson market value balance sheet : Construct Stephenson’s market value balance sheet before it announces the purchase.

What will the market value of the stephenson company : What will the market value of the Stephenson company be if the purchase is financed with debt?

Incremental cost of capital : If your incremental cost of capital is 10% would you invest in growth? Why or why not?

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