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Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc and Lowe's Companies Inc. Assume the statutory tax rate is

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Compute NOPAT Selected income statement information for 2018 is presented below for Home Depot Inc and Lowe's Companies Inc. Assume the statutory tax rate is 22%. Company (s millions Ticker Sales NOPBT Home Depot HD $108,203 $15.219 Lowe's LOW 69,883 3.938 Pretax Net Nonoperating Expense $955 612 Tax Expense $3.366 1.080 Average Net Operating Assets $24,713 20,326 2. Compute the following measures for both companies. Measure Rounding Instructions Home Depot 1. Net operating profit (NOPAT) Round to nearest whole dollar 5 11.6435 2. Return on net operating assets AINOA) Round percentage to one decimal place 50 X 3. Net operating profit margin (OPM) Round percentage to one decimal place 14.1% X 4 Net operating asset turnover (NOAT Round amount to two decimal places 0.X Lowe's 2,723 14.1 56 NK OX b. Indicate which of these two companies 1. Is more profitable (in 5 Home Depot 2. Produces the higher profit margin (in). Home Depot 3. Uses its NOA more efficiently. Home Depot 4. Produces the higher return on NOA Home Depot

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