The four members of the Walton family controlling more than half the shares of Wal-Mart Stores Inc. had $11 billion of their combined net worth evaporate Wednesday as shares of the retailer plunged on a lower earnings outlook for the coming fiscal year.
1. Who are the four Waltons that the article is talking about and what was their relationship to founder Sam Walton?
2. What was their combined fortune at the beginning of the year and what is it now?
3. According to the article, who are the other two stockholders that lost the most and how much did they lose?
4. What does Walmart CEO, Doug McMillon, point to as the reason why the company’s profit outlook will be lower for the next two years? How much lower in 2017? What is the potential growth from these changes?
Coffey, B. (2015). Wal-Mart Heirs See $11 Billion Vanish in a Day on Share Fall. Bloomberg Business.com, October 14 (Retrievable online at http://www.bloomberg.com/news/articles/2015-10-14/wal-mart-heirs-see-9-billion-vanish-in-a-day-as-shares-plummet)
Oyedele, A. (2015). Wal-Mart Warns: Our profits will fall next year. Business Insider.com, Oct. 14 (Retrievable online at http://www.businessinsider.com/wal-mart-cuts-profit-outlook-2015-10)