Walmart ROIC Tree Outside Assignment Step One: Use Walmart's financial stateme ose Walmart's financial statements to fill in the 2018 data. To calculate the taxa for 2018, divide the income taxes paid for that year by that year's net income. Step Two: Calculate the averages for the years 2013 - 2018. Step Three: Use the attached template format to fill in the average data. 2001 1-ECOGS/Sales ProTax ROIC EBIT/Sales Sales/rested Capital 360 x ROIC Pro TaxROC. 1- Cash rate on Em natPPE on 033 e Sales invested Capital 1 Operating Working Capital Sales - NetPPE/Sales + Other Sales 2018 Averages Date COGS/Sales Depr/Sales SGA Exp/Sales Total 1-Total Walmart ROIC Tree 2013 2014 2015 2016 2017 0.733204 0.733167 0.732853 0.729119 0.723874 0.018117 0.018623 0.018882 0.19497 0.020778 0.189424 0.191795 0.192361 0.201274 0.209939 0.940745 0.943585 0.944096 1.125363 1.134028 0.059255 0.056412 0.055904 -0.12536 0.13403 OPER WC/Sales -0.02532 -0.01503 -0.0041 -0.00909 -0.19046 Net PPE/Sales 0.2487 0.247559 0.240194 0.241657 0.235355 Other Assets/Sales 0.005691 0.005123 0.000803 0.000975 0.007317 0.229069 0.237649 0.236899 0.233547 0.216509 1/Total 4.365479 4.207886 4.221208 4.281793 4.618746 Total -0.61904 Pre-Tax ROIC 0.258678 0.237388 0.235982 -0.12536 1-TxRate 0,779614 0.758543 0.765694 0.774136 0.830012 ROIC -0.51381 0.201669 0.180069 0.18069 -0.12536 Weighted Average Cost of Capital Calculations is you need such as interest expense, relevant bond data, or this exercise, assume such data as you need such as interest expenses preferred and common stock dividends, and the information provided below Cost of Debt: Step 1: Calculate the cost of debt ky using the bond formula. Step 2: Calculate the after-tax cost of debt, k' by multiplying k by (1-T.) where T, is the interest expense divided by taxable income (obtained from the income statement). Cost of Preferred Stock: Step 3: Calculate the cost of preferred stock using the valuation formula (D/P)- Cost of Equity: Step 4: Calculate the cost of equity using the Gordon constant growth rate model [I=(D./Po) + g.] Assumed Capital Structure Step 5: Using a capital structure of $100 units, calculate the respective weight for each of the capital components. For example: Weights Debt = $30 units (30/100) = 3 =Wd Preferred stock = 10 units (10/100) = .1 = wp Common stock = 60 units (60/100) = .6 = we Total Capital = $100 units Step 6: Calculate the weighted average cost of capital by their respective weights and summing the products. ROIC TREE COGS/Sales Depreciation Sales 1- ) EBIT/Sales/ SGA Expense ) L Sales 1 Pretax ROIC Operating working capital 11: Sales Sales/ Invested Capital ROIC Net PPE / Sales Cash tax rate on EBIT Other assets/ Sales Walmart ROIC Tree Outside Assignment Step One: Use Walmart's financial stateme ose Walmart's financial statements to fill in the 2018 data. To calculate the taxa for 2018, divide the income taxes paid for that year by that year's net income. Step Two: Calculate the averages for the years 2013 - 2018. Step Three: Use the attached template format to fill in the average data. 2001 1-ECOGS/Sales ProTax ROIC EBIT/Sales Sales/rested Capital 360 x ROIC Pro TaxROC. 1- Cash rate on Em natPPE on 033 e Sales invested Capital 1 Operating Working Capital Sales - NetPPE/Sales + Other Sales 2018 Averages Date COGS/Sales Depr/Sales SGA Exp/Sales Total 1-Total Walmart ROIC Tree 2013 2014 2015 2016 2017 0.733204 0.733167 0.732853 0.729119 0.723874 0.018117 0.018623 0.018882 0.19497 0.020778 0.189424 0.191795 0.192361 0.201274 0.209939 0.940745 0.943585 0.944096 1.125363 1.134028 0.059255 0.056412 0.055904 -0.12536 0.13403 OPER WC/Sales -0.02532 -0.01503 -0.0041 -0.00909 -0.19046 Net PPE/Sales 0.2487 0.247559 0.240194 0.241657 0.235355 Other Assets/Sales 0.005691 0.005123 0.000803 0.000975 0.007317 0.229069 0.237649 0.236899 0.233547 0.216509 1/Total 4.365479 4.207886 4.221208 4.281793 4.618746 Total -0.61904 Pre-Tax ROIC 0.258678 0.237388 0.235982 -0.12536 1-TxRate 0,779614 0.758543 0.765694 0.774136 0.830012 ROIC -0.51381 0.201669 0.180069 0.18069 -0.12536 Weighted Average Cost of Capital Calculations is you need such as interest expense, relevant bond data, or this exercise, assume such data as you need such as interest expenses preferred and common stock dividends, and the information provided below Cost of Debt: Step 1: Calculate the cost of debt ky using the bond formula. Step 2: Calculate the after-tax cost of debt, k' by multiplying k by (1-T.) where T, is the interest expense divided by taxable income (obtained from the income statement). Cost of Preferred Stock: Step 3: Calculate the cost of preferred stock using the valuation formula (D/P)- Cost of Equity: Step 4: Calculate the cost of equity using the Gordon constant growth rate model [I=(D./Po) + g.] Assumed Capital Structure Step 5: Using a capital structure of $100 units, calculate the respective weight for each of the capital components. For example: Weights Debt = $30 units (30/100) = 3 =Wd Preferred stock = 10 units (10/100) = .1 = wp Common stock = 60 units (60/100) = .6 = we Total Capital = $100 units Step 6: Calculate the weighted average cost of capital by their respective weights and summing the products. ROIC TREE COGS/Sales Depreciation Sales 1- ) EBIT/Sales/ SGA Expense ) L Sales 1 Pretax ROIC Operating working capital 11: Sales Sales/ Invested Capital ROIC Net PPE / Sales Cash tax rate on EBIT Other assets/ Sales