Answer to Requirement 1.
Value of Wal Mart Store’s (WMT) stock = 400 Shares *
$68.59
Value of Wal Mart Store’s (WMT) stock = $27,436.00
Value of Apple Inc’s (AAPL) stock = 80 Shares * $570.52
Value of Apple Inc’s (AAPL) stock = $45,641.60
Value of Portfolio = $27,436.00 + $45,641.60
Value of Portfolio = $73,077.60
Weight of Wal Mart Store’s (WMT) Stock = $27,436 /
$73,077.60
Weight of Wal Mart Store’s (WMT) Stock =
0.3754
Weight of Apple Inc’s (AAPL) Stock = $45,641.60 /
$73,077.60
Weight of Apple Inc’s (AAPL) Stock = 0.6246
Answer to Requirement 2.
Portfolio Return = (Weight of WMT stock * Return on WMT Stock) +
(Weight of AAPL stock * Return on AAPL Stock)
Portfolio Return = (0.3754 * 0.10) + (0.6246 * 0.21)
Portfolio Return = 16.87%
Assume you bought 400 shares of wal mart stores (WMT at $68.59) and 80 shares of...
Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 11.00 percent. Their recent dividend was $1.53. What is the value of their stock when the required rate of return is 16.00 percent?
Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 14.00 percent. Their recent dividend was $2.43. What is the value of their stock when the required rate of return is 16.00 percent? $1.3851 $121.50 $138.51 $1.2150
Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 12.00 percent. Their recent dividend was $1.83. What is the value of their stock when the required rate of return is 16.00 percent? Multiple Choice $45.75 $.5124 $.4575 $51.24
Wal-Mart Stores Inc. (WMT) Income Statement View: Annual Data All numbers in thousands Jan 31, 2012 Jan 31, 2011 Jan 31, 2013 Period Ending Total Revenue Cost of Revenue 469.162.000 352488,000 446.950.000 335,127.000 4 21.849.000 314,946,000 116,674,000 111,823,000 106,903,000 Gross Profit Operating Expenses Research Development Selling General and Administrative No. Recucina Others 88,873,000 85,265,000 81.361.000 Total Operating Expenses Operating Income or Loss 27,801,000 26,558,000 25,542,000 Income from Continuing Operations 187,000 Total Other Income/Expenses Net Earings Before Interest And Taxes Interest...
Problem 6-3 Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to serve as a parking lot for customers. Management is considering the following bids involving two different qualities of surfacing for a parking area of 11,600 square yards. Bid A: A surface that costs $5.75 per square yard to install. This surface will have to be replaced at the end of 5 years. The annual...
Wal-Mart Stores Inc. (WMT) Income Statement View: Annual Data All numbers in thousands Jan 31, 2012 Jan 31, 2011 Period Ending Jan 31, 2013 Total Revenue 469,162.000 121.849,000 314,946,000 Cost of Revenue 446.950,000 335,127,000 111,823,000 352,488,000 Gross Profit 116,674,000 106,903,000 Operating Expenses Research Development Selling General and Administrative 88,873,000 85,265,000 000 Non Recudine Others Total Operating Expenses Operating Income or Loss 27,801.000 26,558,000 25.542.000 Income from Continuing Operations Total Other Income/Expenses Net Eamings Before Interest And Taxes Interest Expense 187,000...
Wal-Mart Stores Inc. (WMT) Income Statement View. Annual Data All numbers in thousands Period Ending Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Total Revenue 469,162,000 446,950,000 335,127.000 Cost of Revenge 352.488,000 421,849,000 314.948.000 106.903.000 116,674,000 111,823,000 Gross Profit Operating Expenses Research Develoment Seling General and Administrative No. Recurrina Others 88,873,000 85,265,000 81,361,000 Total Operating Expenses Operating income or Loss 27.801.000 26.558.000 25.542.000 Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income...
Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to serve as a parking lot for customers. Management is considering the following bids involving two different qualities of surfacing for a parking area of 11,600 square yards. Bid A: A surface that costs $6.25 per square yard to install. This surface will have to be replaced at the end of 5 years. The annual maintenance cost...
Problem 5 (Efficient frontier and portfolio choice)Consider the following expected returns, volatilities, and correlations:StockExpected returnStandard deviationCorrelation with Duke EnergyCorrelation with MicrosoftCorrelation with Wal-MartDuke Energy14%6%1-10Microsoft44%24%-110.7Wal-Mart23%14%00.71(a) Consider a portfolio consisting of only Duke Energy and Microsoft. The percentage of your investment (portfolio weights) that you would place in Microsoftstock to achieve a risk-free investment should be closest to:(1) 15%(2) 4%(3) 23%(4) 10%(b) The expected return of a portfolio that is equally-invested in Duke Energy and Microsoft is closest to:(1) 28%(2) 29%(3) 24%(4)...
Wal-Mart Stores Inc. (WMT) Income Statement View: Annual Data All numbers in thousands Jan 31, 2012 Jan 31, 2011 Jan 31, 2013 Period Ending Total Revenue 469,162,000 421,849,000 446,950,000 335,127,000 Cost of Revenue 352.488,000 314,948.000 116,674,000 111,823,000 106,903,000 Gross Profit Operating Expenses Research Development Selling General and Administrative Non. Recurring Others 88,873,000 85,265,000 81,361,000 Total Operating Expenses Operating Income or Loss 27,801,000 26,558,000 25,542,000 Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income...