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E10.17 On February 2, 2015, the end of Home Depot's (HD) 2014 fiscal year (FY), HD's share price was $104.42. a. b. With 1,307 million
E10.17 On February 2, 2015, the end of Home Depot's (HD) 2014 fiscal year (FY), HD's share price was $104.42. a. b. With 1,307 million shares outstanding, what was HD's market capitalization at February 2, 2015? At February 2, 2015, HD's NFL was $15,474 million. What was HD's operating value (VOper) at February 2, 2015? Assuming the market had perfect foresight of HD's future FCF for FY 20152018, what is the implied growth rate the continuing value (CV) at February 2, 2015? HD's weighted-average cost of capital ("wacc) was 8 percent. The FCF (in $ millions) for FY 20152018 were c. FY 2015 FY 2016 FY 2017 FY 2018 $6,489 $7,777 $9,138 $10,463 d. What is the benefit to the analyst in estimating the implied growth rate for the FCF CV? E10.17 On February 2, 2015, the end of Home Depot's (HD) 2014 fiscal year (FY), HD's share price was $104.42. a. b. With 1,307 million shares outstanding, what was HD's market capitalization at February 2, 2015? At February 2, 2015, HD's NFL was $15,474 million. What was HD's operating value (VOper) at February 2, 2015? Assuming the market had perfect foresight of HD's future FCF for FY 20152018, what is the implied growth rate the continuing value (CV) at February 2, 2015? HD's weighted-average cost of capital ("wacc) was 8 percent. The FCF (in $ millions) for FY 20152018 were c. FY 2015 FY 2016 FY 2017 FY 2018 $6,489 $7,777 $9,138 $10,463 d. What is the benefit to the analyst in estimating the implied growth rate for the FCF CV
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