Calculate economic value added assuming its cost of capital

Assignment Help Financial Management
Reference no: EM131518761

At the end of 2011 Home Depot’s total capitalization amounted to $29,025 million. In 2012 debt investors received interest income of $646 million. Net income to shareholders was $4,493 million. (Assume a tax rate of 35%.)

Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Reference no: EM131518761

Questions Cloud

What is payback period of each project : What is the payback period of each project?
What exchange rate will you break-even : If you pay an option premium of $5,000 to buy this call, at what exchange rate will you break-even?
What is the bond price if priced with the assumption : What is the bond price if priced with the assumption that the call will be on the first available call? date?
Value of firm and WACC : Suppose a firm currently has an unleveraged required return of 13% and perpetual unleveraged after-tax income of $100,000 per year.
Calculate economic value added assuming its cost of capital : Calculate the economic value added assuming its cost of capital is 10%.
Calculate the npv of the project : Neon Corporation’s stock returns have a covariance with the market portfolio of .0455. Calculate the NPV of the project.
What are theterritories and what are the states : What is the risk assessment for opening a business in Costa Rica? How is the political system structured? What are theTerritories? What are the States?
The cost of capital-weighted average cost of capital : The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects.
What would be the cost of new equity : Cost of Common Equity with Flotation Banyan Co.’s common stock currently sells for $47.50 per share. What would be the cost of new equity?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd