Question

Access the March 27, 2014, filing of the 10-K report of Home Depot for the year ended February 2, 2014, from www.SEC.gov (Ticker: HD). Refer to Home Depot’s balance sheet, including its note 3 (on debt).
Required
1. Identify Home Depot’s long-term liabilities and the amounts for those liabilities from Home Depot’s balance sheet at February 2, 2014.
2. Review Home Depot’s note 3. The note reports that as of February 2, 2014, it had $2.962 billion of “5.875% Senior Notes; due December 16, 2036; interest payable semiannually on June 16 and December 16.” These notes have a face value of $3.0 billion and were originally issued at $2.958 billion.
a. Why would Home Depot issue $3.0 billion of its notes for only $2.958 billion?
b. How much cash interest must Home Depot pay each June 16 and December 16 on these notes?


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  • CreatedApril 23, 2015
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