# Swot Analysis For Walmart

845 Words 4 Pages
This analysis is based on the following facts: The school you would like to attend costs \$100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with \$100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date, or a combination of both. First, we need to know what 1,000 shares of Wal-Mart stock is currently worth. 1,000 shares of Wal-Mart are currently worth approximately; \$74,650. Additionally, we have calculated that the 1,000 Savings bonds (w \$100 denominations and 4.25% coupon rate) five years from their 30-year maturity date are worth \$107,401.34. Wal-Mart Stock Based on current trends, it does not seem wise to sell …show more content…
The current value of the EE Savings Bonds is \$ 107,401. At the end of 2015, the Wal-Mart raised the federal fund's rate to 0.25 percent. Whether this is the first of many rate increases in 2016 remains to be seen, because there are so many factors at play on each side of the equation. If the Fed raises rates too quickly or by too much, it could lead to another stall in the economy. However, if the economy continues to expand, small increases in 2016 should be good for the U.S. economy, because it will be an affirmation of growth in jobs and income. While an increase in interest rates may spell good things for the economy in general, it is a mixed blessing for bond holders. This is because there is a converse ratio between bond prices and interest rates, What this means is that if interest rates go up, there is pressure to sell this bond while the value is high.
C. By selling the bonds, I can bear my study expenses and can invest the extra amount in the high return investment. I will lose the amount if sell at the coupon rate and the combination of the selling both in stocks and bonds will provide me some benefit if there may be any return on that stock. A disadvantage to selling both is that I reduce the coupon amount and the dividend amount. I believe selling a combination of both is the best bet. I can keep the predictability of bond payout at maturity and also look for gains in the future with my stock. I feel like this would help even out the risk

• ## Goodyear Case Study

I view this scenario highly unlikely, but to protect against a downside scenario, I would recommend purchasing a put option. Based on my research I view my base case price target of \$47 on the conservative end. As shown on the left, the stock has significantly more upside if management executes on their goals for 2020. I view the downside scenarios extremely unlike given the position of the industry and Goodyear’s business transition into higher value products. In a moderate downturn, the stock looks to be close to fairly valued and extreme downside can be protected with a put option.…

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• ## Monster Beverage Case Study

This can be attributed to the expected election in the country since investors tend to shy away during the election period. The individual consumption level in the U.S. increased by 1.29% compared to 2015, which means that the consumers were willing to spend their income to purchase more products. For the past five years, the level of Personal Consumption Expenditure has been constantly changing (Hodgson, 2016). This can be attributed to the level of unemployment five years ago and the income level. In the next five years the GDP percentage will increase hence improving consumers’ purchasing power if all variables are constant (Magas, 2004).…

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• ## School Versus Work Research Paper

This means that in any case the student sells the 1000 EE bonds; he will have \$170,120 (TOOLS, 2016). If he decides to sell the shares at Apple, the current share price is \$111.12 per share. 1000 shares will provide him with \$111,120. Advantages and Disadvantages Having a combination of stock and bonds is the…

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• ## Nt1330 Unit 1 Case Study

SIMP produces .93 basis points higher yield at half the risk of a 30 year mortgage. Given SIMP plenty of cushion against yield spread volatility. So how does SIMP benefit the borrower? Please view cell K8. In 10 years SIMP delivers \$25,414 more equity, twice the amount of equity it would have received under the 30- year model and cut the term of the loan from 30 to 20…

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• ## Apple Company Bond Analysis

If they shut down tomorrow, there is enough cash on hand to pay off their debt. Their bonds are about as safe as purchasing a government bond and in some cases have a higher rate of return. As with all companies, the longer term bonds have a greater rate of return. In the past, Apple stock has been volatile, which is why the longer term bonds pay more. Looking at their rates over the last few years, I would suggest adding Apple’s bonds to an investor’s portfolio.…

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• ## US Dollar Depreciation

Empirical findings also supported the similar view that depreciation of a nation’s currency will shift its trade balance towards surplus only if it can fulfill the Marshall-Lerner condition, or in other words, if the combined elasticity’s of demand for exports and imports is elastic (i.e. the coefficient is greater than 1). Evidence suggests that in the US today, the Marshall-Lerner Condition is in fact being met as in the 2015 fiscal year an increase in exports of 12% in response to a 6% weakening of the dollar indicates a price elasticity of “more than one” for America’s exports, meaning foreigners are highly responsive to cheaper US goods . The ultimate result is that strong export is getting a boost from the cheaper dollar and consequently US trade deficit is narrowing gradually thereafter. We took a broader look on whether currency depreciation can be effective as a means of narrowing US trade deficits but previously in 2009 data shows that the US trade balance gets better because of a reduction in the import side of the trade account.…

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• ## How Does A Weak Dollar Affect Australian Economy

The government has withdrawn from most areas of the market, and competition in sectors such as financial services has increased. Employment is good as always where unemployment rate dropped from 5.7% to 5.6% (Economy.com, 2016), but the part time jobs are dominating. Since inflation rate and interest rate are both low; the economy is supposed to grow faster, it will also make it cheap for business to borrow money to invest in new shops and factories; lower interest rates on deposits so consumers spend more instead of saving; lowering the exchange rate so importing is harder and exporting is easier. GDP and industrial production have experienced an increase and shown a sign of strength and positive impact on the…

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• ## Issuing Case Study: Corning Inc. Operates In Telecommunication

For Corning, pricing a security worth \$106.81 at \$100 may seem like an unfair deal. However, given Corning’s current financial distress, this may be the most reasonable method of financing. The risk still remains that the market will react poorly to this issuance. I believe \$100 is approximately the most Corning would be able to charge for these convertible securities and the \$6.81 discount should be viewed as a cost of financial distress. J.P. Morgan Has Proposed a Security That Will Benefit Investors and Address Corning’s…

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• ## End This Depression Now Summary

With multiple currencies, he believes they are more able to endure a recession. He writes, “But there are also significant advantages to having your own currency, of which the best understood is the way that devaluation – reducing the value of your currency in terms of other currencies – can sometimes ease the process of adjusting to an economic shock” (Krugman 169). By having multiple currencies, it gives flexibility to the economy. Under one currency, values are set at a higher cost of living. However, under multiple currencies, the rise and fall of wages allows countries to match their income with their goods that are being produced, helping them avoid debt.…

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• ## Raising The Minimum Wage Rate

There as, streaming more money back into the economy could possibly stimulate the minds of others to do the same. This could possibly increase the spending of each and every household to about \$700 more per quarter. A major pro from this argument is that it would improve the standard of living tremendously. Studies show that it would help families escape from poverty. By increasing the minimum…

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