Question: How sensitive is return on capital to the forecast assumptions in case Exhibit 8 ? What independent changes in Carrie Galeotafiore s estimates are required
How sensitive is return on capital to the forecast assumptions in case Exhibit What independent changes in Carrie Galeotafiores estimates are required to drive the returnoncapital estimate below Home Depots costofcapital estimate of Look specifically at gross margin, cash operating expenses, receivable turnover, inventory turnover, and P&E turnover. What effect does sales growth have on return of capital? Explain your findings.
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