Problem 2: (15 points)

Refer to the consolidated income statement and balance sheet of Wal-Mart in Appendix.

Required:

1.Compute net operating profit after tax (NOPAT) for fiscal year 2016 and 2017.Assume that combined federal and state statutory tax is 37% for both years.

2.Compute net operating assets (NOA) for 2017, 2016, and 2015.

3.Compute return on net operating assets (RNOA) for 2017 and 2016.

4.What is nonoperating return component of ROE for 2017 and 2016?

5.Comment on the difference between ROE and RNOA.What inference do you draw from this comparison?

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