EXCEL SUBMISSION ONLY AND DO NOT HARD CODE NUMBERS AND USE THE FORMULAS

Comparing Home Depot and Lowes

Using the Du Point Identity Excel from last home work assignment.(contact me and I will send you the spreadsheet, I have attached pictures of it)

Assume the following:

You have $10,000,000 to invest into the company as a stock/equity investor in Q1 2007 and sell out of the company by Q1 2017. All the returns from the company associated with Dividends and Stock Appreciation is assumed to be paid out at the time of the sale in Q1 2017. Run a present value analysis at 10%, 20% and 30%. Which company would you invest in and at what discount rate? Show discount at 10%, 20%, and 30%. Show the net present value and internal rate of return

Sources:

Finance Yahoo for data as needed for stock price

=PV( Rate, N-Periods, Pmt,FV)

Pad 2:19 PM D https://mail-attachment.g M https://mail google.com/m C https:// mail-attachment.googleusercontent.com HD Inc Statement&Balance Sheet Lowes Income & Balance Sheet DuPoint Prev. 3 Years THE HOME DEPOT INC IHD)Cal Operating expenses Total ope ng operatio quivalents Property, pl and equip and Other propeni Property, pl and equip Other Liahiliike tockholder Lars Common Additional paid capital prehensi Total and stockholders' view att&th 15bb 5b9 T 83% Pad 2:19 PM D https://mail-attachment.g M https://mail google.com/m C https:// mail-attachment.googleusercontent.com HD Inc Statement&Balance Sheet Lowes Income & Balance Sheet DuPoint Prev. 3 Years THE HOME DEPOT INC IHD)Cal Operating expenses Total ope ng operatio quivalents Property, pl and equip and Other propeni Property, pl and equip Other Liahiliike tockholder Lars Common Additional paid capital prehensi Total and stockholders' view att&th 15bb 5b9 T 83%