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The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017 Walmart had 3,035 million shares outstanding with
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017 Walmart had 3,035 million shares outstanding with a share price of $136. The company's weighted-average cost of capital was about 5%. Assume a tax rate of 35% Walance sheet (Pigures tons) End of Year Start of Year $ 6,906 5,764 43,93 3) 661 $ 60,264 $ 7,017 5,985 43, 196 2,091 5 58,209 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 Habilities Total shareholders' equity Total 11 abilities and shareholders equity $114,968 30, 190 $205, 422 $114,320 27108 $199.725 5.40,242 32,579 $78,821 36,975 11,457 $122,253 78,169 $ 205,422 5.41,58 25,645 $ 67,228 42,168 12,231 $121.627 78.098 $199,725 Income Statement (figures in milions) Net sales $588, 493 Cost of goods sold 373,546 Selling, general, and administrative expenses 96,131 Depreciation 10.679 Earnings before Interest and taxes (EBIT) $ 20,137 Interest expense 2.328 Taxable Incore 5 17,809 4600 Net income $ 13,209 Dividends 8,274 Addition to retained earnings $ 6,935 $486,023 351,486 91,923 10,230 $ 22,464 2:417 $ 20,04% 7.016 $ 11,931 6,845 5 6,186 a. Calculate the market value added. (Do not round intermediare 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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