wal-mart stocks

  1. Gather the financial data necessary for calculations:
  2. Analysist estimate of EPS
  3. PE ratio of the industry
  4. Most recent dividend
  5. Anticipated dividend
  6. Dividend growth rate
    • there are many ways to calculate this, if the dividend growth is relatively constant over time and there have not been any major announcements to cause you to believe it will change then just use the average rate of change
    • alternatively you can use one of the following methods:
      1. PRAT model: Retention rate × Profit margin × Asset turnover × Financial leverage
      2. Implied payout method: g=ROE(1-dividend payout ratio)
  • CAGR method: g= ((DIVo / DIVh) ^ (1 / h)) – 1 where: h is some number or years in the past, ex: if you find a dividend from 5 years ago then h=5


  1. Beta
    • look up the reported beta
    • calculate the beta based on returns
  2. Stock price for the last 5 years
  3. Market return (Rm) for the last 5 years – use S&P500
  4. Risk Free Return (Rf) for the last 5 years – use 3 month T-bills


  1. Using the skills you learned in class calculate the following:
    1. Stock price estimate using the PE method
    2. Required rate of return using the CAPM equation with the most recent data and the quoted beta
    3. Required rate of return using a CAPM regression
      • note you may need to convert T-bill returns from discounts to monthly returns depending on your data source
        • How does your beta compare with the quoted beta? How can you explain the difference (if any)?
  1. Stock price estimate using the adjusted DDM/GGM method. You may assume a 5 year horizon since the earnings growth rate projections are not available beyond that.
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages

Order your essay today and save 10% with the discount code tCPCOVID10