Develop a pro forms P&L and Balance Sheet for fiscal year ending 31 Jan 2006.

Additional
assumption:
SG& A 17.3% of anticipated nett sales
Interest on debt 4%
Similar prep aids, other assets, accrued liabilities, deferred tax and minority interest as in 2005.

Determine the intrinsic value of Wal-Mart using the DDM. Assess the value based on three
forms of DDM: the constant growth version, an assessment based on three years of projected
dividend and a projected future stock price, and the three-stage DDM.

Determine the intrinsic value using the P/E approach.