Calculate the economic value added

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Question 1 - Torrid Romance Publishers has total receivables of $2,880, which represents 20 days' sales. Total assets are $87,600. The firm's operating profit margin is 5.9%. Find the firm's ROA and asset turnover ratio.

Question 2 - Home Depot entered fiscal 2017 with a total capitalization of $21,922 million. In 2017, debt investors received interest income of $883 million. Net income to shareholders was $8,672 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%.

Reference no: EM133057014

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