Answer Happy

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.) Answer is complete but not entirely correct. 334,591 million a. b. C. 5.28 Market value added Market-to-book ratio Economic value added Return on capital $ 6,759 X million 12.23% d.

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 Cate of 35%. Balance Sheet (figures in $ millions) End of Year Start of Year $ 6,906 5,764 43,933 3,661 $ 60, 264 $ 7,017 5,985 43,196 2,091 $ 58,289 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 $114,968 30,190 $ 205,422 $114,328 27,108 $199,725 $ 46,242 32,579 $ 78,821 36,975 11,457 $127, 253 78,169 $205,422 $ 41,583 25,645 $ 67,228 42,168 12,231 $121,627 78,098 $199,725 Income Sta in Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Taxable income Tax Net income Dividends Addition to retained earnings million $500,493 373,546 96,131 10,679 $ 20,137 2,328 $ 17,809 4,600 $ 13,209 6,274 $ 6,935 $486,023 361,406 91,923 10,230 $ 22,464 2,417 $ 20,047 7,016 $ 13,031 6,845 $ 6,18 €