Question
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,932 million shares outstanding with
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,932 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 21%. Balance Sheet (figures in $ millions) Fiscal 2019 Fiscal 2018 Assets Current assets: Cash and marketable securities $ 9,665 $ 7,922 Accounts receivable 6,484 6,483 Inventories 44,635 44,469 Other current assets 1,822 3,823 Total current assets $ 62,606 $ 62,697 Fixed assets: Net fixed assets $ 127,249 $ 111,595 Other long-term assets 47,840 46,203 Total assets $ 237,695 $ 220,495 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 47,173 $ 47,260 Other current liabilities 31,017 30,617 Total current liabilities $ 78,190 $ 77,877 Long-term debt 43,914 43,720 Other long-term liabilities 33,639 18,864 Total liabilities $ 155,743 $ 140,461 Total shareholders' equity 81,952 80,034 Total liabilities and shareholders equity $ 237,695 $ 220,495 Income Statement (figures in $ millions) Net sales $ 524,164 Cost of goods sold 394,805 Selling, general, and administrative expenses 98,004 Depreciation 11,187 Other income/expenses 2,347 Earnings before interest and taxes (EBIT) $ 22,515 Interest expense 2,799 Taxable income $ 19,716 Tax 4,600 Net income $ 15,116 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.
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