Question
Home Depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017, debt investors received interest income of $889 million. Net income to
Home Depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017, debt investors received interest income of $889 million. Net income to shareholders was $8,690 million. (Assume a tax rate of 21%.)
Calculate the economic value added assuming its cost of capital is 10%.(Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
