Use Home Depot’s financial information in Appendix A to compute the ROI and EVA for 2008 and 2009. Use Net Earnings from page A-4 to measure earnings or returns and Net Property and Equipment from page A-5 as the invested capital base. Assume the weighted-average cost of capital is 10 percent. Interpret the EVA and ROI numbers for Home Depot between 2008 and 2009. Are they improving or declining? Why?
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