The following table gives abbr

The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2017, Walmart had 2,965 million shares outstanding with a share price of $108. The company’s weighted-average cost of capital was about 5%. Assume a tax rate of 35%. Balance Sheet (figures in $ millions) End of Year Start of Year Assets Current assets: Cash and marketable securities $ 6,766 $ 6,877 Accounts receivable 5,624 5,845 Inventories 43,793 43,056 Other current assets 3,521 1,951 Total current assets $ 59,704 $ 57,729 Fixed assets: Net fixed assets $ 114,828 $ 114,188 Other long-term assets 30,050 26,968 Total assets $ 204,582 $ 198,885 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 46,102 $ 41,443 Other current liabilities 32,439 25,505 Total current liabilities $ 78,541 $ 66,948 Long-term debt 36,835 42,028 Other long-term liabilities 11,317 12,091 Total liabilities $ 126,693 $ 121,067 Total shareholders’ equity 77,889 77,818 Total liabilities and shareholders’ equity $ 204,582 $ 198,885 Income Statement (figures in $ millions) Net sales $ 500,353 $ 485,883 Cost of goods sold 373,406 361,266 Selling, general, and administrative expenses 95,991 91,783 Depreciation 10,539 10,090 Earnings before interest and taxes (EBIT) $ 20,417 $ 22,744 Interest expense 2,188 2,277 Taxable income $ 18,229 $ 20,467 Tax 4,600 7,163 Net income $ 13,629 $ 13,304 Dividends 6,134 6,705 Addition to retained earnings $ 7,495 $ 6,599 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.)

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