Home depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017 debt investors received interest income of $889 million. Net income to shareholders was $8690 million (assume a tax rate of 21%) calculate the economic value added assuming its cost of capital is 10%

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A: Return on operating assets is the return earned over operating assets.

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A: Residual income refers to the money you have after you've taken care of ongoing expenses like your…

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A: Given, EBIT $47 million Depreciation $4.7 million capital expenditures $7.25 million Net working…

Q: EVA

A: Formula for calculating Economic value added (EVA) is: Operating income after tax less annual cost…

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Q: The Net Income of a company is $137. Capital expenditures for the year was $98, depreciation was…

A:

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A: To find out how much Ivanhoe Network Associates can increase their notes payable without dropping…

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A: WACC considers all the sources of finance with their respective weights

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A: Given, EBIT is $52 million Depreciation expense $5.2 million Capital expenditures is $5.75 million

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A: Free cash flow refers to the availability of cash flow for repaying the amount to the creditors,…

Q: n​ 2016, the Allen Corporation had sales of ​$60 million, total assets of ​$47 million, and total…

A: Operating income excludes interest and taxes, and it gives an idea of how efficiently a company is…

Q: For 2018, Gourmet Kitchen Products reported $22.5 million of sales and $18 million of operating…

A: Economic value added (EVA) is a measure of a company's economic profit. It is the value created…

Q: Houston pumps recently reported net income of $600000 and an interest expense of $238000. The…

A: Economic Value Added (EVA):It represents the true economic profit of a firm. Thus, it is a measure…

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A: (Economic Value added)EVA=NOPAT - (Total assets - Current liabilities)*WACC

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A: Given, Return on assets is 11% debt to total assets is 40%

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A: There are different views how capital structure determines or influences firm value. Traditional…

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A: Given, EBIT = $9,737 Depreciation = $1,851 Capital Expenditure = $3,438

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A: Solution Economic value added = NOPAT - (WACC * capital invested)   Here NOPAT = Net operating…

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A: CALCULATION OF NET INCOME PARTICULARS CALCULATION AMOUNT ($) EBITDA= (15% of sales) 15% x…

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A: In corporate valuation model, the value of the company is its value of operations plus…

Q: For the fiscal year 2020, AI Rawabi Company has a net profit of RO 150,000 and a return on capital…

A: The question is based on the concept of Accounting ratios.

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A: Retained Earnings Breakpoint  = Retained Earnings ÷ Weight of equity    •Weight of equity =…

Q: OSA Company has the following values of interest-bearing debt and common equity capital: Financing…

A: in this we have to calculate weighted average cost of capital and than calculate the value of firm.

Q: At this point (at the end of 2013), a company's weighted average capital cost (WACC) is 12%, and its…

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A: Cash flow from operating activities = Net income + depreciation + Increase in working capital = 40.2…

Q: A firm has current assets of $1,600, net fixed assets of $6,000, accounts payable of $800, long-term…

A: Current assets = $1600Net fixed assets = $6000Accounts payable = $800Long-term debt = $2400Equity =…

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A: The Weighted Average Cost of Capital (WACC) is a financial metric used to calculate the cost of…

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A: ($ in millions)Addition to retained earnings = $32,902Net income = $69,605The retention ratio for…

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