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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