Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help A-D Tax rate in 2020 was 24.2%. The Home Depot, Inc. Balance Sheet Additional Information: 1. Home Depot has 1,030,000,000 shares of common

please help A-D
image text in transcribed
image text in transcribed
image text in transcribed
Tax rate in 2020 was 24.2%. The Home Depot, Inc. Balance Sheet Additional Information: 1. Home Depot has 1,030,000,000 shares of common stock outstanding. The market value per share is $285.00. 2. Home Depot's cost of money is 7%. 3. Cash dividends per share were expected to be $7.00. 4. The industry average for the current ratio is 1.60. 5. The industry average for the quick ratio is .91. 6. The industry average for the inventory holding period is 77 days. 7. The industry average for the receivables holding period is 8 days. 8. The industry average for the debt-equity ratio is .61. 9. The industry average for the times interest earned ratio is 10.4. 10. The industry average for the net profit margin is .026. 11. The industry average for the total asset turnover is .85. 12. The industry average for the equity multiplier is 1.61. 13. The industry average for the return on equity is .036. Required: All calculations need to be in context of figures provided above. (8 pts.) a). Calculate the 2021 DuPont Identity and discuss what the DuPont Identity reveals. (6 pts.) b). Calculate the inventory-holding period and the receivables holding period for 2021 . Discuss what these two metrics indicate. (6 pts.) c). Calculate the current ratio and the quick ratio for 2021 . Discuss what these ratios indicate. (6 pts.) d). Calculate the debt to equity ratio and the times interest earned ratio for 2021. Discuss what these ratios indicate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applications In Energy Finance

Authors: Christos Floros, Ioannis Chatziantoniou

1st Edition

3030929566, 978-3030929565

More Books

Students also viewed these Finance questions