The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 3,030 million shares outstanding with a share price of $134. The company's weighted average cost of capital was about 5%. Assume a tax rate of 35% Start of Year $ 7,007 5,975 43, 186 2,081 $ 58,249 Balance Sheet (figures in $ millions) End of Year Assets Current assets: Cash and marketable securities $ 6,896 Accounts receivable 5,754 Inventories 43,923 Other current assets 3,651 Total current assets $ 60,224 Fixed assets: Net fixed assets $114,958 Other long-term assets 30, 180 Total assets $ 205, 362 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 46,232 Other current liabilities decent 32,569 Total current liabilities $ 78, 801 Long-term debt 36,965 other long-term liabilities 11,447 Total liabilities $127,213 Total shareholders' equity 78,149 Total liabilities and shareholders' equity 205, 362 $114,318 27,098 $199,665 $ 41,573 25,635 $ 67, 208 42,158 12,221 $121,587 78,078 $199. Income Statement (figures in $ millions) Net sales $500, 483 Cost of goods sold 373,536 Selling, general, and administrative expenses 96,121 Depreciation 10,669 $ 486,013 361,396 91,913 10,220 Other long-term liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity 11,447 $127,213 78,149 $ 205, 362 12,221 $121,587 78, 078 $199,665 Income Statement (figures in $ millions) Net sales $500,483 Cost of goods sold 373,536 Selling, general, and administrative expenses 96,121 Depreciation 10,669 Earnings before interest and taxes (EBIT) $ 20,157 Interest expense 2,318 Taxable income 010 $ 17,839 Tax LAN 4,600 Net income $ 13,239 Dividends 6, 264 Addition to retained earnings $ 6,975 $486, 013 361,396 91,913 10,220 $ 22,484 44103 2,407 1101 $ 20,077 7,027 $ 13,050 6,835 6, 215 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 intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. million b. Market value added Market-to-book ratio Economic value added Return on capital C. million d. %
