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Calculate the economic value added

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Reference no: EM132420317

Problem: Home Depot entered fiscal 2016 with a total capitalization of $27,234 million. In 2016, debt investors received interest income of $837 million. Net income to shareholders was $6,366 million. (Assume a tax rate of 35%.)

Required:

Calculate the economic value added assuming its cost of capital is 10%.

Reference no: EM132420317

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