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need help with a few Finance Questions - Please show how you got the answer (steps) At the end of 2011 Home Depots total capitalization

need help with a few Finance Questions - Please show how you got the answer (steps)

At the end of 2011 Home Depots total capitalization amounted to $29,037 million. In 2012 debt investors received interest income of $650 million. Net income to shareholders was $4,481 million. (Assume a tax rate of 35%.)

Home Depots common stock closed fiscal 2012 at a price of $75.30 per share. There were 1,770 million shares outstanding, At the end of 2012, the book value of Home Depots equity was $17,785 million. Suppose the broad stock market falls 20% in a year and Home Depots stock price falls by 15%.

a. Will the companys market value added rise or fall?
Rise
Fall

b. Should this change affect our assessment of the performance of Home Depots managers?
Yes
No

c.

Calculate the market value added, if the stock market were unchanged and Home Depots stock fell by 15%.(Enter your answer in millions. Round intermediate calculations and final answer to the nearest whole number.)

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.)

Long-term debt ratio 0.3
Times interest earned 8.0
Current ratio 1.1
Quick ratio 1.0
Cash ratio 0.3
Inventory turnover 4.0
Average collection period 73 days

Use the above information from the tables to work out the following missing entries, and then calculate the companys return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values.(Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)

INCOME STATEMENT
(Figures in $ millions)
Net sales $
Cost of goods sold
Selling, general, and administrative expenses 23.00
Depreciation 33.00

Earnings before interest and taxes (EBIT) $
Interest expense

Income before tax $
Tax (35% of income before tax)

Net income $

BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $ $33 Accounts receivable 47 Inventories 39

Total current assets $ $ 119 Net property, plant, and equipment 38

Total assets $ $157

Liabilities and shareholders equity Accounts payable $40.00 $ 35 Notes payable 50.00 55

Total current liabilities 90 Long-term debt 21 Shareholders equity 46

Total liabilities and shareholders equity $235.00 $157

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