Home Depot entered fiscal 2017 with a total capitalization of $21,907 million. In 2017, debt investors received an interest income of $878 million. Net income to shareholders was $8,657 million. (Assume a tax rate of 21%.)   Calculate the economic value-added assuming its cost of capital is 10%

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A: Free cash flow = EBIT*(1-tax) + Deprication - capital expenditure - Increase in Working capital

Q: Ohio Quarry Inc. has $10 million in assets. Its expected operating income (EBIT) is $4 million and…

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A: Unlevered Free cashflw =  EBIT - Tax + Depreciation - Change in working Capital - Capital…

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A:

Q: Suppose that for 2010 Aquarius company's current assets totaled $60,000; total assets totaled…

A: Solution:- Introduction:- Debt to equity ratio is a financial ratio that measures the company's…

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A: given, sales =$125,000 operating cost = $75,500 depreciation = $10,200 bond = $16500 interest rate =…

Q: EVA

A: Formula for calculating Economic value added (EVA) is: Operating income after tax less annual cost…

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A: Here, Free Cash flow to Equityholder, FCFE = Dividend paid to the shareholders = $68,000Let's put…

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A:

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A: Given the following information: Beginning Net Fixed Assets: $684,218 Ending Net Fixed Assets:…

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A: Economic value added is used to determine the financial position of the company based on its…

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A: Sales, S = $17,300,Current assets, CA = $3,650; Net fixed assets, NFA =  $10,850; Hence, total…

Q: A Company recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and…

A: Given: Sales $15,500 Operating Costs $8,250 Depreciation $1,750.  It had $9,000 of bonds outstanding…

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A: The term gross profit represents gross earnings generated after subtracting all production costs…

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A: Return on Assets: It is often called Return on Total Assets. It measures the net income generated by…

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A: Net income is the excess of revenue over all the operating and other expenses of the company…

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A: Calculation of Free Cash Flow using excel:

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A: Cash flows method help in determining the corporate value and the debt amount is to be deducted from…

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A: Income statement:   It is a financial statement prepared by a company that reports revenues and…

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Q: Bouvous Corporation had the following information for 2015: Revenue $400,000 Operating expenses…

A: Net income=Revenue-Operating expenses=$400,000 - $350,000=$50,000

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A: Income tax expense refers to the expense amount which company records in the accounting period for…

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A: Depreciation and Amortization: A company incurs capital expenditure to procure assets from which it…

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A: Operating cash flow is a component of cash flow statement. It shows the amount of cash generated by…

Q: Home depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017 debt…

A: Measure company's financial performance based on the residual wealth.  Economic value added (EVA) =…

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A: Operating profit is the operating revenues of the business after deducting operating expenses of the…

Q: Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2017. Expenses…

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Q: Target industries reported $11,500 of sales and $5,000 of operating costs (including depreciation).…

A: A method that helps to measure a company’s financial performance by deducting the overall cost of…

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A: OCF is net cashflow which is arises from only operating activities or it is the difference of net…

Q: During 2018, Raines Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and…

A: Answer and calculations are given below

Q: For 2018, gourmet kitchen products reported $22 million of sales & $19 million of operating costs…

A: A concept that helps to evaluate the financial performance of a company by deducting the overall…

Q: purchased additional equipment for $11.7 million at the end of 2016, and this equipment was…

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A:

Q: For the past year, Kayla, Incorporated, has sales of $46,967, interest expense of $4,088, cost of…

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