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Suppose that Walmart announces that it will augment its dividend policy by paying out 42% of net income plus the amount of excess cash each year (if any). Assume that during Year +1 to Year +5, Walmart will maintain a constant cash balance of $8,705 million (the ending cash balance in 2016). . Determine the total amount of dividends that Walmart could pay each year under this scenario. Identify one potential benefit that increased dividends could create for the financial management of Walmart.

Walmart Stores, Inc. (Walmart) is the largest retailing firm in the world. Building on a base of discount stores, Walmart has expanded into warehouse clubs and Supercenters, which sell traditional discount store items and grocery products. The exhibits, in this case, present the financial statements of Walmart for 2013-2015. See the attached that has a set of financial statement forecasts for Walmart for Year 1 to Year 5 using the assumptions in the case. 1. Suppose that Walmart announces that it will augment its dividend policy by paying out 42% of net income plus the amount of excess cash each year (if any). Assume that from Year 1 to Year 5. Walmart will maintain a constant cash balance of $8,705 million (the ending cash balance in 2016). Revise your forecast model spread sheets to change the financial flexibility account from cash to dividends. Determine the total amount of dividends that Walmart could pay each year under this scenario. Identify one potential benefit that increased dividends could create for the financial management of Walmart. Respond to the questions using APA style to include at least one citation from the chapter readings and/or the case study that supports or provides evidence for your response to each question. Your response should not be less than 100 words per question. Do not repeat the questions asked (does not count towards the answer and word count), but rather identify your response to each question clearly by means of a heading for each question. Finally, make sure you answer all portions of the question (s) asked with ample explanation and detail. Integrative Case 10-1 Walmart Forecasted Financials.pdf Walmart Stores, Inc. (Walmart) is the largest retailing firm in the world. Building on a base of discount stores, Walmart has expanded into warehouse clubs and Supercenters, which sell traditional discount store items and grocery products. The exhibits, in this case, present the financial statements of Walmart for 2013-2015. See the attached that has a set of financial statement forecasts for Walmart for Year 1 to Year 5 using the assumptions in the case. 1. Suppose that Walmart announces that it will augment its dividend policy by paying out 42% of net income plus the amount of excess cash each year (if any). Assume that from Year 1 to Year 5. Walmart will maintain a constant cash balance of $8,705 million (the ending cash balance in 2016). Revise your forecast model spread sheets to change the financial flexibility account from cash to dividends. Determine the total amount of dividends that Walmart could pay each year under this scenario. Identify one potential benefit that increased dividends could create for the financial management of Walmart. Respond to the questions using APA style to include at least one citation from the chapter readings and/or the case study that supports or provides evidence for your response to each question. Your response should not be less than 100 words per question. Do not repeat the questions asked (does not count towards the answer and word count), but rather identify your response to each question clearly by means of a heading for each question. Finally, make sure you answer all portions of the question (s) asked with ample explanation and detail. Integrative Case 10-1 Walmart Forecasted Financials.pdf

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