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The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 2,975 million shares outstanding with
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 2,975 million shares outstanding with a share price of $112. The company's weighted average cost of capital was about 5%. Assume a tax rate of 35%. Balance Sheet (figures in $ millions) End of Year Start of Year $ $ 6, 786 5, 644 43,813 3,541 $ 59, 784 6,897 5,865 43,076 1,971 57,809 $ $ 114,848 30,070 $ 204,702 $ 114, 208 26,988 $ 199,005 Assets Current assets: Cash and marketable securities Accounts receivable Inventories Other current assets Total current assets Fixed assets: Net fixed assets Other long-term assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity $ 41,463 25, 525 66,988 $ $ 46,122 32,459 $ 78,581 36,855 11,337 $ 126,773 77,929 42,048 12,111 $ 121,147 77,858 $ 204,702 $ 199,005 Income Statement (figures in $ millions) Net sales $ 500, 373 $ 485, 903 Cost of goods sold 373,426 361,286 Selling, general, and administrative expenses 96,011 91,803 Depreciation 10,559 10,110 Earnings before interest and taxes $ 20,377 $ (EBIT) 22,704 Interest expense 2,208 2,297 Taxable income $ 18,169 $ 20,407 Tax 4,600 7, 142 Net income $ 13,569 13,265 Dividends 6,154 Addition to retained earnings $ 7,415 $ 6,540 6, 725 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.)
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