User Account

All Pages

What is walmart cost of funds

Assignment Help Finance Basics
Reference no: EM133057028

Walmart would like to borrow floating USD for 5 years. It could issue CP every three months. Does this deliver a floating rate? Why? What are the risks of CP? Alternatively, Walmart could issue a five-year FRN at L+0.75%. As a third alternative, it could issue in EUR fixed at 0.5%. Dealers quote five-year EUR swap rate at -0.35 bid / -0.32 ask and the USD swap rate at 1.0% bid/ 1.02% ask. What sort of financing do you recommend that Walmart issue-CP, USD FRN or EUR fixed? Explain in detail. What is Walmart's cost of funds?

(Don't ask me for a reference; it's the Prof. own questions, no textbook, if you know finance you should have an opinion/answer)

Reference no: EM133057028

Questions Cloud

Hedging against the risk of widening credit spreads : If you are concerned about hedging against the risk of widening credit spreads, would you use a Total Return of Credit Default Swap?
Find expense for tax purposes : A firm raises $23,000 of total financing, of which Equity is $11,500 and the rest is Debt. The rate of return to investors for Equity is 9% and for debt is 5%.
Which biases are being exhibited by the client : Described how should a financial advisor deal with and counsel the client who is looking at making sub-optimal finance decisions due to biases. Your role as a g
What is hailstorm company break-even point in units : Variable costs are $14 per unit and fixed costs are $75,000 at an operating level of 7,000 to 12,000 units. What is Hailstorm Company break-even point in units
What is walmart cost of funds : What sort of financing do you recommend that Walmart issue-CP, USD FRN or EUR fixed? Explain in detail. What is Walmart's cost of funds?
What is the npv of the project-modern miracles movies : Modern Miracles Movies (3M) is evaluating a project that has a beta coefficient equal to 1.5. The risk-free rate is 2.5 percent and the market risk premium is 8
Calculate the present value of the payments : A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price. Calculate the present value of the payments
Reduce price risk or price uncertainty : A rice farmer in Kedah has invested heavily in state-of-the-art fertilizers and expects a heavy harvest of rice in 6 months from now.
Calculating the tax effects : Mammoth Pictures Inc. is a small company and is considering a project that will require $600,000 in assets. The project will be financed with 100% equity.

Reviews

Write a Review

Finance Basics Questions & Answers

  What was the value of the holdings based on us dollars

Orbital Communications has operating plants in over 100 countries. It also keeps funds for transaction purposes in many foreign countries.

  Compute these ratios for mountain-pacific railroad

Compute these ratios for Mountain-Pacific Railroad for both 2011 (using year-end balances) and 2012 (using average balances where appropriate). Identify significant trends. Could the company experience solvency problems? Explain.

  What are requirements of the omb circular a-94

What are requirements of the OMB Circular A-94 in calculating benefit-cost ratios of public sector projects funded by the Federal Highway Administration? I need more details.

  Prepare the journal entries to record the transactions

The bonds pay interest semiannually on July 1 and January 1. On January 1, 2016, after receipt of interest, Flynn Company sold 40 of the bonds for $38,500. Prepare the journal entries to record the transactions described above.

  What was the total return for mr guessford investment

Four years ago, Ken Guessford purchased 200 shares of Mountain View Manufacturing. At the time, each share of Mountain View was selling for $30.

  What is the market value of ost’s preferred stock

Out-of-Sight Telecommunications (OST) has preferred stock outstanding with a par value of $40 per share that pays an annual dividend equal to 5 percent.

  What is the present value of ichiro contract

First assume that all of the deferred money and accumulated interest is paid out along with the final salary payment at the end of 2012.

  Explore alternative solutions that combine various

This forum will help you explore alternative solutions that combine various degrees of fixed and variable cost elements.

  Analyze the financial reporting information

Analyze the financial reporting information and the financial health of the company with the help of the calculated ratios.

  What is the target stock price in five years

a. What is the target stock price in five years? b. What is the stock price today assuming a required return of 11 percent on this stock?

  Prepare a post-closing trial balance

Prepare a Post-Closing Trial Balance

  What is the required return on the given portfolio

You are the money manager of a 5 stock portfolio with the following investment amounts in each one: $10 million, $2 million, $5 million, $6 million.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd