Wal-Mart Use the income statement and balance sheet for Wal-Mart (see Appendix A) to gather the necessary information to calculate Wal-Mart’s Economic Value Added (EVA®) for 2006 and 2005. Wal-Mart’s weighted average cost of capital (WACC) has been estimated to be anywhere between 8% and 13%.

1. Calculate 2006 and 2005 EVA® for Wal-Mart assuming a WACC of 8%.

2. Calculate 2006 and 2005 EVA® for Wal-Mart assuming a WACC of 13%.

3. How do the two WACC values affect the EVA® calculation?