Calculate Altmans Z score for Home Depot in fiscal year 2011 (as of January 29, 2012) and
Question:
Calculate Altman’s Z score for Home Depot in fiscal year 2011 (as of January 29, 2012) and then compare it with Moody’s rating chart. Is this company an IG or non-IG? All numbers are inmillions.
Transcribed Image Text:
Current assets Current liabilities Non-equity book liability BL $22,620 Mrket value of equity MVE $67,618 CA $14,520 Retained earnings RE $2,251 CL $9,376 EBIT EBIT $6,661 Total assets TA $40,518 Sales $70,395
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 85% (21 reviews)
Z 12X 1 14X 2 33X 3 06X 4 0999X 5 ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Question Posted:
Students also viewed these Corporate Finance questions
-
In the Home Depot 2012 financial statements in Appendix A at the end of this textbook, read note 1. Find the information about Home Depot 's international store locations. a. In what countries (other...
-
In its 2008 annual report, Home Depot reported that fiscal 2008 sales decreased to $71.3 billion (from $77.3 billion the previous fiscal year), while profits decreased to $2.26 billion (from $4.395...
-
Song Corp's stock price at the end of last year was $26.25 and its earnings per share for the year were $1.30. What was its P/E ratio?
-
You've been hired as an economic adviser to Yamaichi Foreign Exchange Traders. What buy or sell recommendations for U.S. dollars would you make in response to the following news? a. Faster economic...
-
Relational databases are very popular in organisations nowadays. What are your experiences of using these databases? How useful do you find them, particularly databases of customer records? Are there...
-
Explain what single sufficient and twofold sufficient classification represent.
-
Morland Company started year 1 with $75,000 in its cash and common stock accounts. During year 1, Morland paid $50,000 cash for employee compensation and $17,500 cash for materials. Required a....
-
I need help to solve this in the Excel Spreadsheet and need to know how to use the formulas to find those. J H F E G LL C A D B Find the daily gross earnings for each employee. Suppose that avocado...
-
A certain amount of mercury is compressed from an initial pressure of 500 MPa to a certain amount of final pressure. The final pressure of mercury required, to reduce a unit volume of mercury by 10%...
-
Calculate the fixed burden coverage and cash-flow-to-debt ratio given the following: EBIT = $700,000; depreciation and amortization = $60,000; preferred dividend $50,000; sinking fund payments =...
-
Explain the elements of Altmans Z score as used in Practice Problem18. Current assets Current liabilities Non-equity book liability BL $22,620 Mrket value of equity MVE $67,618 CA $14,520 Retained...
-
Understand the distinction between tangible and intangible fixed assets.
-
Consider the following C functions and assembly code: int fun4 (int *ap, int *bp) ( int a = *ap; int bbp; return a+b; }) pushl ebp movl esp, ebp int fun5 (int *ap, int *bp) { int bbp; *bp + *ap;...
-
The position of a particle moving along the x-axis is given by x(t) = = 4.2 2.5t m. (Assume t is in seconds.) (a) At what time (in s) does the particle cross the origin? 1.68 S (b) What is the...
-
2. Boxes A and B are being pulled to the right by a rope attached to box B. Box A sits on top of box B, and both boxes accelerate together to the right at a rate of 1.75 m/s. The masses and...
-
You bought a 15-kilogram sack of unshelled peanuts for your restaurant. You weigh the sack three times on a balance, with the following results: Trial Mass (kg) 1 15.02 2 15.49 3 15.91 The results...
-
Two hikers leave the same tent at a campground and go separate ways. One hiker walks 8 miles directly south to Ashville, and the other hiker walks 14 miles directly northwest (i.e., N45W) to...
-
Calculate the confidence interval and confidence limits for the errors in question 6-3 using ratio estimation. Compare your answer to the one for question 5-12 where the same errors were used to...
-
a) Show that (a, b) := {{a}, {b}} does not satisfy the ordered pair axiom. b) Determine whether each of the following statements is true or false. (Give a reason in each case): (i) {a, b} C (a, b)....
-
Let a random sample of 5 observations from a normal (, 2 ) distribution (where it is known that the mean = 25) be (a) What is the equation for the shape of the likelihood function of the variance ...
-
Assume the same information as in IFRS17-12 except that Roosevelt has an active trading strategy for these bonds. The fair value of the bonds at December 31 of each year-end is as follows....
-
Assume the same information as in IFRS17-12 except that Roosevelt has an active trading strategy for these bonds. The fair value of the bonds at December 31 of each year-end is as follows....
-
On December 21, 2012, Zurich Company provided you with the following information regarding its trading investments. During 2013, Carolina Company shares were sold for $9,500. The fair value of the...
-
3. The nominal interest rate compounded monthly when your $7,000 becomes $11,700 in eight years is ________
-
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a...
-
Advanced Small Business Certifica Drag and Drop the highlighted items into the correct boxes depending on whether they increase or decrease Alex's stock basis. Note your answers- you'll need them for...
Study smarter with the SolutionInn App