10 OT Depot's capitalization amounted to $29,031 million. In 2012 debt investors received interest income of $648 million. Net income to shareholders was $4,487 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round

10 OT Depot's capitalization amounted to $29,031 million. In 2012 debt investors received interest income of $648 million. Net income to shareholders was $4,487 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

At the end of 2011 Home Depot's total
capitalization amounted to $29,031 million. In
2012 debt investors received interest income of
$648 million. Net income to shareholders was
$4,487 million. (Assume a tax rate of 35%.)
Calculate the economic value added assuming
its cost of capital is 10%. (Do not round
intermediate calculations. Give your answer in
millions rounded to 2 decimal places.)

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