Reading Qs
What company was this case study about?
What is Walmart
Define the cost of capital.
What is the minimum return a company must earn to satisfy lenders and shareholders
Why should Walmart NOT use the same WACC for all divisions?
What is risk
What was Walmart's tax rate?
What is 27%
What are the names of the senior managers?
Who are Dale and Lee
What does the cost of capital determine?
What is what projects to invest in
What is if the project's return is higher than the WACC
What was Walmart's coupon rate for their 2030 bonds?
What is 7.55%
What year was the case study set in?
When is 2019
What is another term for cost of capital?
What is hurdle rate
If interest rates go down, what happens to WACC?
What was Walmart's after-tax cost of debt?
What is 2.58%
What state was Walmart founded in?
What is Arkansas
If Walmart had preferred stock, how would this affect the cost of capital?
What is increase
How do you calculate WACC?
T/F: Preferred stock is tax deductible
What is false