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Question

Identify Risks: Identify and discuss some of the primary risks that WallMart faces in the near future. These should be at the company, industry, and economy-wide levels. Discuss ways, if any, that the Walmart can mitigate these risks. (Good sources include: the company's annual report, analyst reports, recent news about the company, Yahoo! and Google Finance, Mergent, Hoover's, etc.);Annual Stock Prices and Returns;Create a table showing the stock prices for the past five years (you can either use an average annual price or the ending price at a given date). This data can be found at Yahoo! Finance. Choose "Historical Prices" and then you can select a range of dates by month and download as a table. You will need to convert the monthly data to annual data.;Calculate the annual returns for each year.;Calculate the average stock price, average return, and standard deviation over this period.;Stock Beta and Cost of Equity;Identify the beta for Wallmart. (You can find this at Yahoo! Finance choosing "Key Statistics" and look for the beta.);Using the CAPM equation and beta you identified, calculate the company's(WallMart) cost of equity. Note: you will need the risk-free rate and the market risk premium. For the risk free rate, you can use the 10-year rate of the US Treasury Bonds (which you can find through a Google search). For the market risk premium, use 10.5% minus the risk-free rate.;Paper Mechanics should be as follows;There is no minimum page length requirement for this paper.;The paper should be in APA format (e.g., cover page, double-spaced, 12 pt font, reference section at end, etc.).;The paper should include at least 2 sources, such as the annual report, Yahoo! Finance or Google Finance, the company's web site, etc.;The paper should be divided into the sections indicated above (label each section clearly).

 

Paper#76063 | Written in 18-Jul-2015

Price : $22
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