a Estimate the historical CAGR in sales for WMT from 2013 to 2022 Enter the answer in as a percent (e g , 5 55 5 55) not a decimal b What is the intrinsic value for WMT using the relative P B model Assumptions Book value per share are calculated as total shareholders' equity divided by primary shares outstanding Expected growth rate in earnings is equal to the historical CAGR in sales from the previous problem Expected industry P B multiple is 5 45 c What is the weighted average cost of capital (WACC) for WMT at the most recent fiscal year end Assumptions Market value of equity is the current stock price ($160) multiplied by primary shares outstanding Market value of debt is equal to book value of long term debt Required rate of return on equity is measured using the CAPM (market return is 9 , risk free is 3 5 , and beta is 0 5) Required rate of return on debt is equal to its most recent interest expense divided by long term debt The tax rate is equal to its most recent income taxes divided by pretax income Enter the answer as a percent (e g , 5 55 5 55) not a decimal begin tabular c c c c c c c c c c c hline A B C D E F G H I J K hline multicolumn 11 l POSITION hline Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 hline (FYR Ending) (31JAN2014) (31JAN2015) (31JAN2016) (31JAN2017) (31JAN2018) (31JAN2019) (31JAN2020) (31JAN2021) (31JAN2022) (31JAN2023) hline multicolumn 11 l ASSETS hline Cash Equivalents 7,281 000 9,135 000 8,705 000 6,867 000 6,756 000 7,722 000 9,465 000 17,741 000 14,760 000 8,625 000 hline Receivables Total (Net) 6,677 000 6,778 000 5,624 000 5,835 000 5,614 000 6,283 000 6,284 000 6,516 000 8,280 000 7,933 000 hline Inventories Total 44,858 000 45,141 000 44,469 000 43,046 000 43,783 000 44,269 000 44,435 000 44,949 000 56,511 000 56,576 000 hline multicolumn 11 l Prepaid Expenses hline Current Assets Other 2,369 000 2,224 000 1,441 000 1,941 000 3,511 000 3,623 000 1,622 000 20,861 000 1,519 000 2,521 000 hline Current Assets Total 61,185 000 63,278 000 60,239 000 57,689 000 59,664 000 61,897 000 61,806 000 90,067 000 81,070 000 75,655 000 hline hline Plant, Property Equip (Gross) 178,678 000 182,634 000 188,054 000 191,129 000 197,857 000 198,570 000 221,563 000 198,218 000 207,433 000 220,844 000 hline Accumulated Depreciation 60,771 000 65,979 000 71,538 000 76,951 000 83,039 000 87,175 000 94,514 000 88,370 000 94,809 000 101,610 000 hline Plant, Property Equip (Net) 117,907 000 116,655 000 116,516 000 114,178 000 114,818 000 111,395 000 127,049 000 109,848 000 112,624 000 119,234 000 hline hline Investments at Equity 000 000 000 000 hline Investments and Advances Other 000 000 000 14,422 000 12,888 000 11,169 000 hline Intangibles 19,510 000 18,102 000 16,695 000 17,037 000 18,242 000 36,981 000 36,273 000 33,883 000 33,814 000 32,474 000 hline multicolumn 11 l Deferred Charges hline Assets Other 6,149 000 5,671 000 6,131 000 9,921 000 11,798 000 9,022 000 11,367 000 4,276 000 4,464 000 4,665 000 hline TOTAL ASSETS 204,751 000 203,706 000 199,581 000 198,825 000 204,522 000 219,295 000 236,495 000 252,496 000 244,860 000 243,197 000 hline hline multicolumn 11 l LIABILITIES hline Accounts Payable 37,415 000 38,410 000 38,487 000 41,433 000 46,092 000 47,060 000 46,973 000 49,141 000 55,261 000 53,742 000 hline Notes Payable 7,670 000 1,592 000 2,708 000 1,099 000 5,257 000 5,225 000 575 000 224 000 410 000 372 000 hline Accrued Expenses 17,976 000 18,337 000 18,863 000 19,911 000 19,375 000 20,227 000 20,306 000 22,922 000 23,480 000 25,689 000 hline Taxes Payable 966 000 1,021 000 521 000 921 000 645 000 428 000 280 000 242 000 851 000 727 000 hline Debt (Long Term) Due In One Year 4,412 000 5,097 000 3,296 000 2,821 000 4,405 000 2,605 000 7,666 000 5,072 000 4,797 000 6,231 000 hline Other Current Liabilities 906 000 815 000 744 000 743 000 2,747 000 1,932 000 1,990 000 15,044 000 2,580 000 5,437 000 hline Total Current Liabilities 69,345 000 65,272 000 64,619 000 66,928 000 78,521 000 77,477 000 77,790 000 92,645 000 87,379 000 92,198 000 hline Long Term Debt 44,559 000 43,692 000 44,030 000 42,018 000 36,825 000 50,203 000 64,192 000 57,950 000 52,116 000 52,320 000 hline Deferred Taxes (Balance Sheet) 5,110 000 4,671 000 3,357 000 4,333 000 3,831 000 6,296 000 6,204 000 8,445 000 6,917 000 7,269 000 hline Investment Tax Credit 000 000 000 000 000 000 000 000 000 000 hline Liabilities Other 2,907 000 4,134 000 3,964 000 5,011 000 4,523 000 5,685 000 6,757 000 5,925 000 6,557 000 7,419 000 hline Noncontrolling Interest Redeemable 1,491 000 000 000 000 000 000 000 000 000 237 000 hline TOTAL LIABILITIES 123,412 000 117,769 000 115,970 000 118,290 000 123,700 000 139,661 000 154,943 000 164,965 000 152,969 000 159,443 000 hline multicolumn 11 l SHAREHOLDERS' EQUITY hline Preferred Stock 000 000 000 000 000 000 000 000 000 000 hline Common Stock 323 000 323 000 317 000 305 000 295 000 288 000 284 000 282 000 276 000 269 000 hline Capital Surplus 2,362 000 2,462 000 1,805 000 2,371 000 2,648 000 2,965 000 3,247 000 3,646 000 4,839 000 4,969 000 hline Retained Earnings (Net Other) 73,570 000 78,609 000 78,424 000 75,122 000 74,926 000 69,243 000 71,138 000 76,997 000 78,138 000 71,455 000 hline Less Treasury Stock 000 000 000 000 000 000 000 000 000 000 hline Shareholders Equity Parent 76,255 000 81,394 000 80,546 000 77,798 000 77,869 000 72,496 000 74,669 000 80,925 000 83,253 000 76,693 000 hline begin tabular l Noncontrolling Interest Nonredeemable end tabular 5,084 000 4,543 000 3,065 000 2,737 000 2,953 000 7,138 000 6,883 000 6,606 000 8,638 000 7,061 000 hline TOTAL SHAREHOLDERS EQUITY 81,339 000 85,937 000 83,611 000 80,535 000 80,822 000 79,634 000 81,552 000 87,531 000 91,891 000 83,754 000 hline TOTAL LIABILITIES AND EQUITY 204,751 000 203,706 000 199,581 000 198,825 000 204,522 000 219,295 000 236,495 000 252,496 000 244,860 000 243,197 000 hline end tabular

Question

a  Estimate the historical CAGR in sales for WMT from 2013 to 2022   Enter the answer in as a percent (e g , 5 55  5 55)   not a decimal  b  What is the intrinsic value for WMT using the relative P B model  Assumptions  Book value per share are calculated as total shareholders' equity divided by primary shares outstanding  Expected growth rate in earnings is equal to the historical CAGR in sales from the previous problem  Expected industry P B multiple is 5 45  c  What is the weighted average cost of capital (WACC) for WMT at the most recent fiscal year end  Assumptions  Market value of equity is the current stock price ($160) multiplied by primary shares outstanding  Market value of debt is equal to book value of long term debt  Required rate of return on equity is measured using the CAPM (market return is 9 , risk free is 3 5 , and beta is 0 5)  Required rate of return on debt is equal to its most recent interest expense divided by long term debt  The tax rate is equal to its most recent income taxes divided by pretax income   Enter the answer as a percent (e g , 5 55    5 55)   not a decimal   begin tabular   c c c c c c c c c c c    hline A   B   C   D   E   F   G   H   I   J   K     hline  multicolumn 11   l    POSITION       hline Fiscal Year    2013   2014   2015   2016   2017   2018   2019   2020   2021   2022     hline (FYR Ending)    (31JAN2014)   (31JAN2015)   (31JAN2016)   (31JAN2017)   (31JAN2018)   (31JAN2019)   (31JAN2020)   (31JAN2021)   (31JAN2022)   (31JAN2023)     hline  multicolumn 11   l    ASSETS       hline Cash    Equivalents   7,281 000   9,135 000   8,705 000   6,867 000   6,756 000   7,722 000   9,465 000   17,741 000   14,760 000   8,625 000     hline Receivables   Total (Net)   6,677 000   6,778 000   5,624 000   5,835 000   5,614 000   6,283 000   6,284 000   6,516 000   8,280 000   7,933 000     hline Inventories   Total   44,858 000   45,141 000   44,469 000   43,046 000   43,783 000   44,269 000   44,435 000   44,949 000   56,511 000   56,576 000     hline  multicolumn 11   l    Prepaid Expenses       hline Current Assets   Other   2,369 000   2,224 000   1,441 000   1,941 000   3,511 000   3,623 000   1,622 000   20,861 000   1,519 000   2,521 000     hline Current Assets   Total   61,185 000   63,278 000   60,239 000   57,689 000   59,664 000   61,897 000   61,806 000   90,067 000   81,070 000   75,655 000     hline                         hline Plant, Property    Equip (Gross)   178,678 000   182,634 000   188,054 000   191,129 000   197,857 000   198,570 000   221,563 000   198,218 000   207,433 000   220,844 000     hline Accumulated Depreciation   60,771 000   65,979 000   71,538 000   76,951 000   83,039 000   87,175 000   94,514 000   88,370 000   94,809 000   101,610 000     hline Plant, Property    Equip (Net)   117,907 000   116,655 000   116,516 000   114,178 000   114,818 000   111,395 000   127,049 000   109,848 000   112,624 000   119,234 000     hline                         hline Investments at Equity                000    000    000    000     hline Investments and Advances   Other    000    000    000           14,422 000   12,888 000   11,169 000     hline Intangibles   19,510 000   18,102 000   16,695 000   17,037 000   18,242 000   36,981 000   36,273 000   33,883 000   33,814 000   32,474 000     hline  multicolumn 11   l    Deferred Charges       hline Assets   Other   6,149 000   5,671 000   6,131 000   9,921 000   11,798 000   9,022 000   11,367 000   4,276 000   4,464 000   4,665 000     hline TOTAL ASSETS   204,751 000   203,706 000   199,581 000   198,825 000   204,522 000   219,295 000   236,495 000   252,496 000   244,860 000   243,197 000     hline                         hline  multicolumn 11   l    LIABILITIES       hline Accounts Payable   37,415 000   38,410 000   38,487 000   41,433 000   46,092 000   47,060 000   46,973 000   49,141 000   55,261 000   53,742 000     hline Notes Payable   7,670 000   1,592 000   2,708 000   1,099 000   5,257 000   5,225 000   575 000   224 000   410 000   372 000     hline Accrued Expenses   17,976 000   18,337 000   18,863 000   19,911 000   19,375 000   20,227 000   20,306 000   22,922 000   23,480 000   25,689 000     hline Taxes Payable   966 000   1,021 000   521 000   921 000   645 000   428 000   280 000   242 000   851 000   727 000     hline Debt (Long Term) Due In One Year   4,412 000   5,097 000   3,296 000   2,821 000   4,405 000   2,605 000   7,666 000   5,072 000   4,797 000   6,231 000     hline Other Current Liabilities   906 000   815 000   744 000   743 000   2,747 000   1,932 000   1,990 000   15,044 000   2,580 000   5,437 000     hline Total Current Liabilities   69,345 000   65,272 000   64,619 000   66,928 000   78,521 000   77,477 000   77,790 000   92,645 000   87,379 000   92,198 000     hline Long Term Debt   44,559 000   43,692 000   44,030 000   42,018 000   36,825 000   50,203 000   64,192 000   57,950 000   52,116 000   52,320 000     hline Deferred Taxes (Balance Sheet)   5,110 000   4,671 000   3,357 000   4,333 000   3,831 000   6,296 000   6,204 000   8,445 000   6,917 000   7,269 000     hline Investment Tax Credit    000    000    000    000    000    000    000    000    000    000     hline Liabilities   Other   2,907 000   4,134 000   3,964 000   5,011 000   4,523 000   5,685 000   6,757 000   5,925 000   6,557 000   7,419 000     hline Noncontrolling Interest   Redeemable   1,491 000    000    000    000    000    000    000    000    000   237 000     hline TOTAL LIABILITIES   123,412 000   117,769 000   115,970 000   118,290 000   123,700 000   139,661 000   154,943 000   164,965 000   152,969 000   159,443 000     hline  multicolumn 11   l    SHAREHOLDERS' EQUITY       hline Preferred Stock    000    000    000    000    000    000    000    000    000    000     hline Common Stock   323 000   323 000   317 000   305 000   295 000   288 000   284 000   282 000   276 000   269 000     hline Capital Surplus   2,362 000   2,462 000   1,805 000   2,371 000   2,648 000   2,965 000   3,247 000   3,646 000   4,839 000   4,969 000     hline Retained Earnings (Net Other)   73,570 000   78,609 000   78,424 000   75,122 000   74,926 000   69,243 000   71,138 000   76,997 000   78,138 000   71,455 000     hline Less  Treasury Stock    000    000    000    000    000    000    000    000    000    000     hline Shareholders Equity   Parent   76,255 000   81,394 000   80,546 000   77,798 000   77,869 000   72,496 000   74,669 000   80,925 000   83,253 000   76,693 000     hline  begin tabular  l  Noncontrolling Interest      Nonredeemable  end tabular    5,084 000   4,543 000   3,065 000   2,737 000   2,953 000   7,138 000   6,883 000   6,606 000   8,638 000   7,061 000     hline TOTAL SHAREHOLDERS EQUITY   81,339 000   85,937 000   83,611 000   80,535 000   80,822 000   79,634 000   81,552 000   87,531 000   91,891 000   83,754 000     hline TOTAL LIABILITIES AND EQUITY   204,751 000   203,706 000   199,581 000   198,825 000   204,522 000   219,295 000   236,495 000   252,496 000   244,860 000   243,197 000     hline  end tabular

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a. Estimate the historical CAGR in sales for WMT from 2013 to 2022. [Enter the answer in as a percent (e.g., 5.55%=5.55) - not a

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