Accounting Financial Analysis : Report
Added on 2021-06-15
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Running Head: Accounting financial analysis report 1Project Report: Accounting financial analysis report
Accounting financial analysis report 2ContentsIntroduction:.....................................................................................................................3Company overview:..........................................................................................................3Cost of equity:...................................................................................................................3Beta from regression analysis:......................................................................................4Beta from analyst report:..............................................................................................4Beta chosen for CAPM:................................................................................................4Capital assets pricing model:........................................................................................5Discounted cash flow:...................................................................................................5Cost of preferred stock:....................................................................................................5Cost of debt:......................................................................................................................6Market value of debt:........................................................................................................6Market value of equity:.....................................................................................................7Market value of preferred stock:.......................................................................................7Value of firm:...................................................................................................................7Firm’s tax rate:..................................................................................................................7Weight for equity:.............................................................................................................8Weight for preferred stock:...............................................................................................8Weight for debt:................................................................................................................8WACC:.............................................................................................................................8Assumptions:....................................................................................................................9References:.....................................................................................................................10Appendix:.......................................................................................................................11
Accounting financial analysis report 3Stock price..................................................................................................................11Regression coefficient:...............................................................................................13Dividend growth rate..................................................................................................14WACC........................................................................................................................16
Accounting financial analysis report 4Introduction:The report has been prepared to understand and measure the concept of cost of the company. This report evaluates the various cost concept of the company on the basis of the market values and the book values of the company. This report concentrates on the cost of equity, cost of debt and cost of preference share of the company to measure and evaluate the performance of the company. In this report, Walmart Inc has been taken into context to measure the concept of cost of capital of an organization. The report measure the total debt, equity and preference share of the company to identify the total cost of the company. An organization is always required to pay something against the capital of the company. The amount paid to the equity holders are known as dividend amount and the amount to debt and preference share holders are known as interest amount. In the report, total cost of capital of the company has been calculated on the basis of the capital sources of Walmart Inc. Company overview:Walmart Inc is a retail company which is mainly based in the American market. The company has diversified its market at international level. Currently, the company is serving its services in Canada, Chile, Brazil, United States, Central America, Japan, India etc. the annual report (2018) of the company explains that the company is holding 11,718 shares worldwide. The comapny sale electrical products, movies and music, Auto, photo finishing, footwear, jewellery, toys, fitness, home improvements items etc through its retail stores. The company has been founded in 1969 and from that time, company is continuously making huge efforts to achieve the goals and the objectives of the company. Cost of equity:Cost of equity is the total return on an organization which explains about the total cost of an organization which would be required to pay by the company against the total equity amount. It is the minimum rate of return which is paid by the company to its investors in order to convince them to invest into the total equity of the company (Fulin, 2011). In other
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