Fin 419 – Capital Valuation Paper – Walmart
Capital Valuation Paper
University Of Phoenix
Finance 419
August 18, 2008
Capital Valuation Paper
“The term capital valuation could be defined as the process of determining the current worth of a portfolio, company, invested, or balance sheet. The tools used for asset valuation include quantitative methods and statistics, financial statements analysis, ratio analysis, fundamental analysis, and valuation economics” (Investopedia, 2008). In the following paper it discuses the capital valuation for Wal-Marts debt and equity, by using various calculations model including the rates and return, it also describes which valuation best supports the model, ending with a conclusion and reference paper.
Equity Calculations
Fiscal year ended January 31, 2007
April 3, 2006 $0.1675
June 5, 2006 $0.1675
September 5, 2006 $0.1675
January 2, 2007 $0.1675
Fiscal year ended January 31, 2008
April 2, 2007 $0.22
June 4, 2007 $0.22
September 4, 2007 $0.22
January 2, 2008 $0.22
Fiscal year ended January 31, 2009
April 7, 2008 $0.2375
June 2, 2008 $0.2375
September 2, 2008 $0.2375
January 2, 2009 $0.2375
Dividend 3 years ago = .16, dividend 2 years ago = .22, and this year dividend = .23.
The grow rate is $.16 + $.22 + $.23 = $.61/3 = 20%. The growth rate for Wal-Marts dividend is a 20% growth from year to year. To find the next dividend