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Please, I need help with part C. I have tried 16,147 million, 9,780 million, and 6,759 million for EVA and I can't figure it out.
Please, I need help with part C. I have tried 16,147 million, 9,780 million, and 6,759 million for EVA and I can't figure it out.
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 3,035 million shares outstanding with a share price of $136. The company's weighted average cost of capital was about 5%. Assume a tax rate of 35%. Start of Year $ 7,017 5,985 43,196 2,091 $ 58,289 Balance Sheet (figures in $ millions) End of Year Assets Current assets: Cash and marketable securities $ 6,906 Accounts receivable 5,764 Inventories 43,933 Other current assets 3,661 Total current assets $ 60,264 Fixed assets: Net fixed assets $114,968 Other long-term assets 30,190 Total assets $205,422 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 46,242 Other current liabilities 32,579 Total current liabilities $ 78, 821 Long-term debt 36,975 Other long-term liabilities 11,457 Total liabilities $127, 253 Total shareholders' equity 78,169 Total liabilities and shareholders' equity $205,422 $114,328 27,108 $199,725 $ 41,583 25,645 $ 67,228 42,168 12,231 $121,627 78,098 $199,725 Income Statement (figures in $ millions) Net sales $500,493 Cost of goods sold 373,546 Callinn and administranti... $486,023 361,406 C 121 1 Total liabilities and shareholders' equity $205,422 $199,725 Income Statement (figures in $ millions) Net sales $500,493 Cost of goods sold 373,546 Selling, general, and administrative expenses 96,131 Depreciation 10,679 Earnings before interest and taxes (EBIT) $ 20,137 Interest expense 2,328 Taxable income $ 17,809 Tax 4,600 Net income $ 13,209 Dividends 6,274 Addition to retained earnings $ 6,935 $486,023 361,406 91,923 10,230 $ 22,464 2,417 $ 20,047 7,016 $ 13,031 6,845 $ 6,186 a. Calculate the market value added. (Do not round intermediate calculations. Enter your answer in millions rounded to nearest whole number.) b. Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Calculate the economic value added. (Do not round intermediate calculations. Enter your answer in millions rounded to nearest whole number.) d. Calculate the return on start-of-the-year capital. (Do not round mediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. a. Market value added $ b. Market-to-book ratio 334,591 million 5.28 16,147 x million 12.23% C. Economic value added $ d. Return on capital
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