Computing Residual Operating Income (ROPI) Home Depot reports net operating profit after tax (NOPAT) of $7,483 million

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Computing Residual Operating Income (ROPI)

Home Depot reports net operating profit after tax (NOPAT) of $7,483 million in 2016. Its net operating assets at the beginning of 2016 are $24,796 million. Assuming a 9% weighted average cost of capital

(WACC), what is Home Depot’s residual operating income for 2016? Show computations.

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Financial Statement Analysis And Valuation

ISBN: 9781618532336

5th Edition

Authors: Peter D. Easton, Mary Lea McAnally, Gregory A. Sommers

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