PRINCIPLES OF CORPORATE FINANCE
PRINCIPLES OF CORPORATE FINANCE
13th Edition
ISBN: 9781264052059
Author: BREALEY
Publisher: MCG
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Chapter 28, Problem 3PS

Performance measures* Table 28.8 gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 2,960 million shares outstanding with a share price of $106. The company’s weighted-average cost of capital was about 5%. Assume the marginal corporate tax rate was 35%. Calculate:

  1. a. Market value added.
  2. b. Market-to-book ratio.
  3. c. Economic value added.
  4. d. Return on start-of-the-year capital.

Chapter 28, Problem 3PS, Performance measures Table 28.8 gives abbreviated balance sheets and income statements for Walmart.

TABLE 28.8 Balance sheets and income statement for Walmart, fiscal 2017 and 2016 (figures in $ millions)

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