Final answer:
The cost of capital for Walmart is the rate of return that investors expect from their investment in Walmart, involving dividends and capital gains, as well as the cost of debt. Without specific details, the exact cost of capital for Walmart cannot be determined.
Step-by-step explanation:
The cost of capital for Walmart is not directly stated, but it can be understood as the expected rate of return that investors require from investing in the company. This rate of return comes in two forms: dividends and capital gains. For example, an investor might buy Walmart stock at $45 and sell it later for $60, making a $15 capital gain. Additionally, the investor expects dividends if provided. The overall cost of capital will include the cost of debt as well, such as interest payments on bonds or other loans. The specific cost of capital for Walmart would consider the weighted average of both equity and debt financing costs known as the weighted average cost of capital (WACC).
Regarding the information provided, if an interest rate is 9% and the firm captures an additional 5% return to society, the firm's effective rate of return would be 4%, which guides how much it invests, such as $183 million in some contexts. However, without concrete figures specific to Walmart's financing details, we cannot provide an exact percentage of Walmart's cost of capital.