# Williams fin 3301 unit 5 agn

Attach is the previous assignment that needed for this assignment

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Williams FIN 3301 Unit 4

Student’s Name

Institution Affiliation

Course

Insturcotr’s Name

Date

Williams FIN 3301 Unit 4

Question 1

 Annual payment required = Loan amount / PVIFA (6%,5) Loan Amount = \$350,000 PVIFA (6%,5) = 4.212 Amount required = \$350,000/4.212 = 83,095.92

The payment appears to be excessive, as the entire amount paid, including interest, is \$415,479.6, which is a large sum given the 6% interest rate.

Question 2

a)

The formula to calculate periodic loan amount is

(P * r * (1+r)n)/((1+r)n-1)

Where P is the principal Amount

R is the periodic interest rate

n is the number of periods

Now, P = 459,000

r = 0.025/12 = 0.0020833

Time is 30*12 = 360 Months

Thus, the monthly loan payments is

=459,000* 0.002083 * (1.002083)360/((1.002083)360 -1)

= 459,000* 0.002083 * 1.8968

= 1,813.5

b) Therefore, incase amortization time is 15 years then n= 15*12 = 180 months

Monthly loan Payment = 495,000* 0.006667 * (1.002083)180/ ((1.002083)180 -1)

= 495,000 * 0. * 3.306921/2.306921

= 495,000 * 0.002083 * 1.4543368

= 495,000*0.002083*3.201009

=3,300.51

c) Because the loan must be returned faster, the monthly payment amount automatically increases as the loan period shortens. However, the amount of interest paid decreases as the loan period shortens.

Higher loan periods lower monthly payments more cumulative interest

Minimal loan time, more monthly payments and less cumulative interest

Question 3

a. Information provided:

Future value= \$750,000

Time= 20 years

Interest rate= 12%

Enter the below in a financial calculator to compute the present value:

FV= 750,000

N= 20

I/Y= 12

Using a PV calculator to calculate the present value

The value obtained is \$77,750.07

Thus, the present value of her goal is \$77,750.07

b. Data are given:

Future value= \$750,000

Time= 15 years

Interest rate= 12%

Place the following in a financial calculator to calculate the present value:

FV= 750,000

N= 15

I/Y= 12

Using a PV calculator to calculate the present value

The value obtained is \$137,022.20.

Thus, the present value of her aim is \$137,022.20.

The present value here is more when the period to accumulate \$750,000 is lower.

Question 4

a. Future Value

Interest rate = 6%

Number of periods = 4

Payment per period = \$475

Future Value = (1+0.06)*475*[(1+r) 4-1)]/0.06

=1.06*475[4.374616)

=\$2,202.62

b. Difference

Interest rate = 6%

Number of periods = 4

Payment per period = \$475

An ordinary Annuity

Future = 475* [(1+0.06) 4-1)]/0.06

= \$2,077.94

Thus, difference is obtained by

=2,202.62-2,077.94

=\$124.68

Question 5

a)

Present worth or value of bond=Present value of coupon payments+ Present value of face value

Present worth or value of bond=Coupon payment*((1-(1/(1+r)^n))/r)+Face value/(1+r)^n

Here

Face value =1000

n=number of periods to maturity=5*2=10 semiannual periods

r- Interest rate per period=YTM per period=12/2=6% semi annual

Semi Annual Coupon payment=coupon rate *face value/2=9.5%*1000/2=47.5

Placing values in formula

Present worth or value of bond=47.5*((1-(1/(1+6%)^10))/6%)+1000/(1+6%)^10

=349.60+558.39

Therefore, Present worth/value of bond=\$907.99

b- in case interest is paid yearly

Present worth or value of bond=Present value of coupon payments+ Present value of face value

Present worth or value of bond=Coupon payment*((1-(1/(1+r)^n))/r)+Face value/(1+r)^n

Here

Face value =1000

n=number of periods to maturity=5 (annual periods)

r- interest rate per period=YTM per period=12% annual

Annual Coupon payment=coupon rate *face value=9.5%*1000/2=95

placing values in formula

Present worth or value of bond=95*((1-(1/(1+12%)^5))/12%)+1000/(1+12%)^5

=342.45+567.43

Calculating to obtain

Present worth of bond=909.88

As can be seen, the present value of a bond decreases when interest is paid semiannually rather than annually since the effective interest rate rises in semiannual periods, lowering the bond’s present value.

In Unit II, you began working on your research paper that will be due in Unit VII of this course. In this unit, you will continue researching the company that you selected for your paper. For this assignment, evaluate the following items in relation to your chosen company:

· Which stock market exchange is the company listed on?

· Look at the past three years’ worth of stock activity for your company.

. What is the average stock price during that period?

. What was the high/low price?

· Has the company ever initiated a stock split?

· How many shares of stock are outstanding? Authorized? Issued?

· Would you invest in this company based on what you have evaluated? Why, or why not?

· Compare this company’s stock to another company within the same industry. How does the stock compare in terms of price and activity? Explain.

Your paper must be at least two pages in length, and you must use at least two sources. Adhere to APA Style when creating citations and references for this assignment.

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Walmart Inc

Mary Williams

Columbia Southern

Financial Management

Dr. Mustafa Saymin

Walmart Inc

History

Walmart Inc., headquartered in Bentonville, Arkansas, is a worldwide retailer with hypermarkets, discount department stores, and grocery shops across the US. Sam Walton founded the company in 1962 in Rogers, Arkansas, and it was incorporated in Delaware on October 31, 1969. The corporation also owns and operates Sam’s Club retail warehouses. As of January 31, 2022, Walmart had 10,593 shops and clubs in 24 countries. In the US and Canada, Walmart is known as Walmart, while in India, Flipkart Wholesale is known as Flipkart Wholesale. The corporation owns 100% of its subsidiaries in Chile, Canada, and South Africa. Walmart owned a minority stake in Walmart Brasil, which was renamed Grupo Big in August 2019.

According to the 2020 Fortune Global 500, Walmart has \$548.743 billion in revenue. And it’s the world’s largest private employer, too. The Walton family owns the company, making it a publicly-traded family enterprise. Sam Walton’s heirs own more than half of Walmart through Walton Enterprises and personal holdings. In 2019, Walmart accounted for 65% of all grocery sales, totaling \$510.329 billion (Sharma, 2019).

Walmart went public on the NYSE in 1972. It had surpassed it as the country’s most profitable retailer by 1988 and the largest by revenue by October 1989. By the early 1990s, the company’s reach had expanded to encompass stores coast to coast. The first Sam’s Club opened in November 1989 in New Jersey, and the first in California opened in July 1990 in Lancaster. In October 1990, a Walmart in York, Pennsylvania, became the Northeast’s first big retailer. Walmart’s global efforts have had mixed results. It has subsidiaries in Canada, the UK, Central and South America, and China but has suffered in Germany, Japan, and South Korea.

The Type of Firm and Industry that Walmart Inc is

It is an international retail corporation founded in the US that operates a chain of cheap department stores and warehouse stores. The company offers a wide range of products and services at everyday low prices. Sam’s Club is one of the company’s three major businesses. This sector sells goods under the Walmart, Wal-Mart, and Walmart Neighborhood Market names as well as on walmart.com and other eCommerce sites. Amazon.com Inc. is a multinational retailing corporation with headquarters in Seattle, Washington. Sam’s Club owns warehouse clubs and the samsclubs.com website.

Past and Current Investments, Banking Structure, and How the Firm Currently Structures Capital by Identifying Banking Relationships

Walmart’s financial structure includes a mix of debt and equity. The store’s total debt (XRT) is \$56.6 billion. Debt is 69.6% of equity and 27% of total assets (Kalyani, 2018). Walmart is a famous company. Its debt is rated investment-grade. Rating agencies believe the corporation can meet its debt servicing obligations on schedule. Credit ratings help determine a company’s debt responsibilities. The lower the cost of capital market borrowing, the better. Walmart has a lower WACC than its peer group average. This helps the company’s financial market position. Walmart’s digital transformation is US-centric. Walmart has spent over \$11 billion on e-commerce, supply chain, and technology in the previous two years alone (Kalyani, 2018). A retailer’s capital has traditionally been spent on repairs and new shop buildings. In fiscal 2020 and 2021, Walmart’s digital transformation will consume 72% of its strategic capital expenditures in the US. Walmart is heavily investing in warehouse automation.

The company used autonomous mobile robots to move pallets. The company is also investing in automated container placement and removal. Sortation systems automatically sort things along the correct shute as they pass through a warehouse on a conveyor. These projects use warehouse control systems to connect automation assets – hardware – to warehouse management software. Witron’s highly automated warehouse technology is being adopted nationwide. As a result, veggies and fruits will arrive faster and cheaper. They are involved in several transportation projects. The company is testing whether vehicles can navigate their yards automatically. To do so, driverless cars will need to be linked to a yard management system. As a result, their yards will flow better.

References

Kalyani, P. (2018). Walmart and Flipkart: The Biggest Deal in Indian E-com Startup Market. Journal of Management Engineering and Information Technology, 5 (4), 113.

Sharma, S. (2019). OData Integration with Analytics Data API.