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quot;Walmart in 2010quot; Case Exercise in Common Stock Valuation The actual price of Walmart stock is $53.48 at the time of the case.

"Walmart in 2010" Case Exercise in Common Stock Valuation

The actual price of Walmart stock is $53.48 at the time of the case. Using the required return to obtain using the CAPM, find the price calculated using the perpetual dividend growth model, One period model (i.e discounting only one year forecasts of future selling price and dividends), and the P/E multiple approach.

Note that you will have three estimates of the price, one each for models a to c. Note that your calculated prices will not be $53.48, do not be alarmed if they are up to $7 off.

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