Use Home Depots financial information in Appendix A to compute the ROI and EVA for the two
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Use Home Depot’s financial information in Appendix A to compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns, and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent. Interpret the EVA and ROI numbers. Did these measures improve, or did they decline? Why?
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THE HOME DEPOT, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal 2018 $ 11,121 (267) 53 8 (206) in millions Net earnings Other comprehensive (loss) Income: Foreign currency translation adjustments Cash flow hedges, net of tax Other Total other comprehensive (loss) Income Comprehensive Income $ 10,915 Fiscal 2017 $ 8,630 311 (1) 301 8,931 Fiscal 2016 $ 7,957 $ (3) 34 - 31 7,988
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ROI for Fiscal 2017 8630 22075 391 EVA for Fiscal 20...View the full answer
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Related Book For
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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