This is for Walmart Cost of Debt Determine the market value of the firms debt issues. Be sure to review the firms 10-K. Also, the website http://finra-markets.morningstar.com/BondCenter may be of assistance. You will need to calculate the firms composite YTM on its bonds. This can be achieved by calculating a weighted-average YTM for its bond issues. After calculating the YTM for the bond issues, calculate the firms after-tax cost of debt. If the firms marginal tax rate cannot be identified in its 10-K, assume that the tax rate will be 35%.

How do I calculate the YTM on Walmart's bonds and cost of debt after tax?

Stock information from Yahoo Finance

Valuation Measures Market Cap (intraday) 5 235.99B Enterprise Value 3 281.64B Trailing P/E 18.98 Forward P/E 1 17.10 PEG Ratio (5 yr expected) 1 3.87 Price/Sales (ttm) 0.98 Price/Book (mrq) 3.11 Enterprise Value/Revenue 3 1.17 Enterprise Value/EBITDA 6 17.20 Financial Highlights Fiscal Year Fiscal Year Ends Jan 31, 2017 Most Recent Quarter (mrq) Jul 31, 2017 Profitability Profit Margin 2.47% Operating Margin (ttm) 4.65% Management Effectiveness Return on Assets (ttm) 3.51% Return on Equity (ttm) 7.91% Income Statement Revenue (ttm) 240.9B Revenue Per Share (ttm) 159.48 Quarterly Revenue Growth (yoy) 2.10% Gross Profit (ttm) 124.62B EBITDA 16.38B Net Income Avi to Common (ttm) 5.94B Diluted EPS (ttm) 4.16 Quarterly Earnings Growth (yoy) -23.20% Balance Sheet Total Cash (mrq) 6.47B Total Cash Per Share (mrq) 2.17 Total Debt (mrq) 47.99B Total Debt/Equity (mrq) 60.72 Current Ratio (mrq) 0.78 Book Value Per Share (mrq) 25.40 Cash Flow Statement Operating Cash Flow (ttm) 11.36B Levered Free Cash Flow (ttm) 9.52B Trading Information Stock Price History Beta 0.05 52-Week Change 3 16.81% S&P500 52-Week Change 3 17.95% 52 Week High 3 81.99 52 Week Low 3 65.28 50-Day Moving Average 3 79.30 200-Day Moving Average 3 77.09 Share Statistics Avg Vol (3 month) 3 8.1M Avg Vol (10 day) 3 7.94M Shares Outstanding 5 2.99B Float 1.44B % Held by Insiders 1 52.80% % Held by Institutions 1 30.65% Shares Short 3 41.95M Short Ratio 3 5.86 Short % of Float 3 2.89% Shares Short (prior month) 3 39.51M Dividends & Splits Forward Annual Dividend Rate 4 2.04 Forward Annual Dividend Yield 4 2.55% Trailing Annual Dividend Rate 3 2.02 Trailing Annual Dividend Yield 3 2.54% 5 Year Average Dividend Yield 4 2.58 Payout Ratio 4 48.56% Dividend Date 3 Sep 05, 2017 Ex-Dividend Date 4 Dec 07, 2017 Last Split Factor (new per old) 2 2/1 Last Split Date 3 Apr 20, 1999

WAL-MART STORES INC (WMT) CashFlowFlag INCOME STATEMENT Fiscal year ends in January. USD in millions except per share data. 2015-01 2016-01 2017-01 TTM Revenue $485,651.00 $482,130.00 $485,873.00 $490,012.00 Cost of revenue $365,086.00 $360,984.00 $361,256.00 $364,436.00 Gross profit $120,565.00 $121,146.00 $124,617.00 $125,576.00 Operating expenses Sales, General and administrative $93,418.00 $97,041.00 $101,853.00 $103,046.00 Total operating expenses $93,418.00 $97,041.00 $101,853.00 $103,046.00 Operating income $27,147.00 $24,105.00 $22,764.00 $22,530.00 Interest Expense $2,461.00 $2,548.00 $2,367.00 $2,405.00 Other income (expense) $113.00 $81.00 $100.00 -$661.00 Income before income taxes $24,799.00 $21,638.00 $20,497.00 $19,464.00 Provision for income taxes $7,985.00 $6,558.00 $6,204.00 $6,020.00 Minority interest $736.00 $386.00 $650.00 $715.00 Other income $736.00 $386.00 $650.00 $715.00 Net income from continuing operations $16,814.00 $15,080.00 $14,293.00 $13,444.00 Net income from discontinuing ops $285.00 Other -$736.00 -$386.00 -$650.00 -$715.00 Net income $16,363.00 $14,694.00 $13,643.00 $12,729.00 Net income available to common shareholders $16,363.00 $14,694.00 $13,643.00 $12,729.00 Earnings per share Basic $5.07 $4.58 $4.40 $4.18 Diluted $5.05 $4.57 $4.38 $4.16 Weighted average shares outstanding Basic $3,230.00 $3,207.00 $3,101.00 $3,048.00 Diluted $3,243.00 $3,217.00 $3,112.00 $3,061.00 EBITDA $36,433.00 $33,640.00 $32,944.00 $32,213.00

WAL-MART STORES INC (WMT) CashFlowFlag BALANCE SHEET Fiscal year ends in January. USD in millions except per share data. 2015-01 2016-01 2017-01 Assets Current assets Cash Cash and cash equivalents $9,135.00 $8,705.00 $6,867.00 Total cash $9,135.00 $8,705.00 $6,867.00 Receivables $6,778.00 $5,624.00 $5,835.00 Inventories $45,141.00 $44,469.00 $43,046.00 Prepaid expenses $2,224.00 $1,441.00 $1,941.00 Other current assets Total current assets $63,278.00 $60,239.00 $57,689.00 Non-current assets Property, plant and equipment Land $26,261.00 $25,624.00 $24,801.00 Fixtures and equipment $47,851.00 $49,950.00 $51,843.00 Other properties $108,522.00 $112,480.00 $114,485.00 Property and equipment, at cost $182,634.00 $188,054.00 $191,129.00 Accumulated Depreciation -$65,979.00 -$71,538.00 -$76,951.00 Property, plant and equipment, net $116,655.00 $116,516.00 $114,178.00 Goodwill $18,102.00 $16,695.00 $17,037.00 Other long-term assets $5,671.00 $6,131.00 $9,921.00 Total non-current assets $140,428.00 $139,342.00 $141,136.00 Total assets $203,706.00 $199,581.00 $198,825.00 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt $6,402.00 $5,453.00 $3,355.00 Capital leases $287.00 $551.00 $565.00 Accounts payable $38,410.00 $38,487.00 $41,433.00 Taxes payable $3,613.00 $3,065.00 $3,737.00 Accrued liabilities $16,560.00 $17,063.00 $17,838.00 Other current liabilities Total current liabilities $65,272.00 $64,619.00 $66,928.00 Non-current liabilities Long-term debt $41,086.00 $38,214.00 $36,015.00 Capital leases $2,606.00 $5,816.00 $6,003.00 Deferred taxes liabilities $8,805.00 $7,321.00 $9,344.00 Minority interest $4,543.00 $3,065.00 $2,737.00 Other long-term liabilities Total non-current liabilities $57,040.00 $54,416.00 $54,099.00 Total liabilities $122,312.00 $119,035.00 $121,027.00 Stockholders' equity Common stock $323.00 $317.00 $305.00 Additional paid-in capital $2,462.00 $1,805.00 $2,371.00 Retained earnings $85,777.00 $90,021.00 $89,354.00 Accumulated other comprehensive income -$7,168.00 -$11,597.00 -$14,232.00 Total stockholders' equity $81,394.00 $80,546.00 $77,798.00 Total liabilities and stockholders' equity $203,706.00 $199,581.00 $198,825.00

WAL-MART STORES INC (WMT) Statement of CASH FLOW Fiscal year ends in January. USD in millions except per share data. 2015-01 2016-01 2017-01 TTM Cash Flows From Operating Activities Net income $17,099.00 $15,080.00 $14,293.00 $13,444.00 Depreciation & amortization $9,173.00 $9,454.00 $10,080.00 $10,344.00 Deferred income taxes -$503.00 -$672.00 $761.00 $822.00 (Gain) Loss from discontinued operations -$285.00 Accounts receivable Inventory -$1,229.00 -$703.00 $1,021.00 $199.00 Accounts payable $2,678.00 $2,008.00 $3,942.00 $2,613.00 Accrued liabilities $1,249.00 $1,303.00 $1,137.00 -$196.00 Income taxes payable $166.00 $492.00 -$346.00 Other working capital -$569.00 -$491.00 -$402.00 -$260.00 Other non-cash items $785.00 $1,410.00 $206.00 $1,339.00 Net cash provided by operating activities $28,564.00 $27,389.00 $31,530.00 $27,959.00 Cash Flows From Investing Activities Investments in property, plant, and equipment -$12,174.00 -$11,477.00 -$10,619.00 -$10,423.00 Property, plant, and equipment reductions $570.00 $635.00 $456.00 $408.00 Acquisitions, net -$1,801.00 -$2,164.00 Purchases of investments -$1,901.00 Other investing charges $479.00 $167.00 -$122.00 -$951.00 Net cash used for investing activities -$11,125.00 -$10,675.00 -$13,987.00 -$13,130.00 Cash Flows From Financing Activities Short-term borrowing -$6,288.00 $1,235.00 -$1,673.00 $1,328.00 Long-term debt issued $5,174.00 $39.00 $137.00 $1,510.00 Long-term debt repayment -$3,904.00 -$4,432.00 -$2,055.00 -$4,206.00 Repurchases of treasury stock -$1,015.00 -$4,112.00 -$8,298.00 -$7,893.00 Cash dividends paid -$6,185.00 -$6,294.00 -$6,216.00 -$6,171.00 Other financing activities -$2,853.00 -$2,558.00 -$824.00 -$914.00 Net cash provided by (used for) financing activities -$15,071.00 -$16,122.00 -$18,929.00 -$16,346.00 Effect of exchange rate changes -$514.00 -$1,022.00 -$452.00 $310.00 Net change in cash $1,854.00 -$430.00 -$1,838.00 -$1,207.00 Cash at beginning of period $7,281.00 $9,135.00 $8,705.00 $7,676.00 Cash at end of period $9,135.00 $8,705.00 $6,867.00 $6,469.00 Free Cash Flow Operating cash flow $28,564.00 $27,389.00 $31,530.00 $27,959.00 Capital expenditure -$12,174.00 -$11,477.00 -$10,619.00 -$10,423.00 Free cash flow $16,390.00 $15,912.00 $20,911.00 $17,536.00 Supplemental schedule of cash flow data Cash paid for income taxes $8,169.00 $8,111.00 $4,507.00 Cash paid for interest $2,433.00 $2,540.00 $2,351.00

Fiscal Years Ended January 31,

(Amounts in millions) 2017 2016 2015

Fair value of restricted stock and

performance share units vested $149 $142 $156

Fair value of restricted stock units vested 261 237 218

Unrecognized compensation cost

for restricted stock and

performance share units 211 133 154

Unrecognized compensation cost

for restricted stock units 986 628 570

Weighted average remaining period

to expense for restricted stock and

performance share units (years) 1.3 1.3 1.3

Weighted average remaining period

to expense for restricted stock

units (years) 1.9 1.7 1.7

Fiscal Years Ended January 31,

(Amounts in millions, except per share data) 2017 2016 2015

Total number of shares repurchased 119.9 62.4 13.4

Average price paid per share $69.18 $65.90 $75.82

Total cash paid for share repurchases $8,298 $4,112 $1,015