Question
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,832 million shares outstanding with
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,832 million shares outstanding with a share price of $94. The company's weighted-average cost of capital was about 5%. Assume a tax rate of 21%. Balance Sheet (figures in $ millions) Fiscal 2019 Fiscal 2018 Assets Current assets: Cash and marketable securities $ 9,465 $ 7,722 Accounts receivable 6,284 6,283 Inventories 44,435 44,269 Other current assets 1,622 3,623 Total current assets $ 61,806 $ 61,897 Fixed assets: Net fixed assets $ 127,049 $ 111,395 Other long-term assets 47,640 46,003 Total assets $ 236,495 $ 219,295 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 46,973 $ 47,060 Other current liabilities 30,817 30,417 Total current liabilities $ 77,790 $ 77,477 Long-term debt 43,714 43,520 Other long-term liabilities 33,439 18,664 Total liabilities $ 154,943 $ 139,661 Total shareholders' equity 81,552 79,634 Total liabilities and shareholders equity $ 236,495 $ 219,295 Income Statement (figures in $ millions) Net sales $ 523,964 Cost of goods sold 394,605 Selling, general, and administrative expenses 97,804 Depreciation 10,987 Other income/expenses 2,147 Earnings before interest and taxes (EBIT) $ 22,715 Interest expense 2,599 Taxable income $ 20,116 Tax 4,915 Net income $ 15,201 Calculate the market value added. Note: Enter your answer in millions rounded to nearest whole number. Calculate the market-to-book ratio. Note: Round your answer to 2 decimal places. Calculate the economic value added. Note: Do not round intermediate calculations. Enter your answer in millions rounded to nearest whole number. Calculate the return on start-of-the-year capital. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started