Calculate the economic value added

Assignment Help Accounting Basics
Reference no: EM133171730

Question - Home Depot entered fiscal 2017 with a total capitalization of $21,904 million. In 2017, debt investors received interest income of $877 million. Net income to shareholders was $8,654 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%.

Reference no: EM133171730

Questions Cloud

What amount should mayo record the receipt of land : If Mayo did not consider the exchange to have commercial substance, at what amount should Mayo record the receipt of land
Improve the speed to market : Your goal is to improve the speed to market and increase the value delivered to the customer. You want to reduce the overall life cycle duration while improving
What is the issue price of the bond : Mountain Excursions issues a bond due in 10 years with a stated interest rate of 7% and a face value of $200,000. What is the issue price of the bond
What was the total labour cost variance : During the period 4,800 units were produced and the factory workers were paid $5.25 per hour. What was the total labour cost variance
Calculate the economic value added : In 2017, debt investors received interest income of $877 million. Net income to shareholders was $8,654 million. Calculate the economic value added
What is the net opportunity cost to adding the coffee shop : A 11.00% cost of capital, and is evaluating this project over a 4.00-year period. What is the net opportunity cost to adding the coffee shop
Volkswagen emission scandal : Identify a detailed analysis of the characteristics of the Volkswagen emission scandal and events that underpin your views. Please support this viewpoint by usi
Prepare the journal entry required by crane delight : The franchise agreement is signed on April 1, 2020, training is completed, and the store opens on July 1, 2020. Prepare the journal entry required by Crane
Going through a vibrant transformation : Fight for food (delivery) The food delivery business is currently going through a vibrant transformation. During the COVID-19 pandemic, many people preferred (a

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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