Walmart Inc.

Consolidated Balance Sheet

As of January 31 ($Millions)
2019 2018
ASSETS
Current Assets:
Cash and Equivalents 7,722 6,756
Accounts Receivable 6,283 5,614
Inventory 44,269 43,783
Prepaid Expenses 3,623 3,511
Total Current Assets 61,897 59,664

Net Property, Plant, and Equipment 111,395 114,818

Goodwill 31,181 18,242
Other Long-Term Assets 14,822 11,798
Total Assets 219,295 204,522

LIABILITIES
Current Liabilities:
Accounts Payable 47,060 46,092
Accrued Liabilities 22,159 22,122
Short-Term Borrowings 5,225 5,257
Current Portion of Long-Term Debt & Capital Lea 2,605 4,405
Other Current Liabilities 428 645
Total Current Liabilities 77,477 78,521

Long-Term Debt and Capital Leases 50,203 36,825

Deferred Income Taxes and Other 11,981 8,354
Total Liabilities 139,661 123,700

EQUITY
Common Stock and Paid-In Capital 3,253 2,943
Retained Earnings 80,785 85,107
Other Comprehensive Income (Loss) (11,542) (10,181)
Total Common Equity 72,496 77,869
Non-Controlling Interest 7,138 2,953
Total Equity 79,634 80,822

Total Liabilities and Equity 219,295 204,522

Total Debt (interest-bearing): Weights

Long-Term Debt & Capital Leases 50,203.0000
Current Portion of Long-Term Debt & Capital Lea 2,605.0000
Short-term Borrowings 5,225.0000
58,033.0000 40.8%
 Total Equity:
Common Stock and Paid-In Capital 3,253.0000
Retained Earnings 80,785.0000
84,038.0000 59.2%

Total Liabilities & Equity 142,071.0000 100.0%

Walmart 2030 bond (as of February 19 2019)

Annual Semi-Annual(Input Values)
Time to maturity - years 11 22
Coupon rate 7.55% $3.775
Current price 136.38 -136.38
Face value $100 $100

>> Yield 1.77%

Compute After-Tax Cost of Debt: Kd YTM

Kd = Before-tax Kd x ( 1 - tax rate) = 3.53%
Compute Cost of Equiy: Ke RF
Ke = Rf + β x MRP = 2.61% +

1 Computation of WACC using Market Values

MV
MV of Debt 72,019.5504
Equity 300,979.0000
Total Capital 372,998.5504

2 Computation of WACC using Book Values

BV weight
Debt 58,033.00 0.408
Equity 84,038.00 0.592
Total Capital 142,071.00

Compute for WACC using Market Value Weights;

1 and 5.4955%
Compute for WACC using book value weights
based on information derived from the
2 consolidated BS (Exhibit 2) 4.7542%
 Information from case
Beta
RF
Shares outstanding
Tax rate
RM
Coupon rate
Current price
Face value
MRP
Stock price
nnual(Input Values)
semi-annual periods (nper) MV of Debt
semi-annual dollar coupons (pmt) BV of S-T Obligations
present value (pv) MV of LT Debt
future value (fv)
MV of Equity
3.53% =rate (nper,pmt,pv,fv) * 2 Price of Stock * Pr /Share

(1-Tc) After-Tax Cost of Debt

77% = 2.72%
Beta (Rm-Rf)
0.71 x 5.00% =

weight cost
0.193 x 2.72% =
0.8069 x 6.16% =
WACC

cost wtd avg

x 2.72% = 1.1104%
x 6.16% = 3.6438%
WACC 4.7542%
mation from case
0.71
2.61%
2945
23%
7%
7.55%
$136.38
$100.00
5%
102.2
MV of Debt
5,225.0000 As reported in Balance Sheet
72,019.5504 Bonds * MV of Debt

MV of Equity
300,979.0000

Cost of Equity
6.16%

wtd avg
0.5249%
4.9706%
5.4955%