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See accompanying notes to consolidated financial statements. See accompanying notes to consolidated financial statements. Exercise 25.15 (Static) Home Depot's ROI and EVA (LO25-4, LO25-6) Use
See accompanying notes to consolidated financial statements. See accompanying notes to consolidated financial statements. Exercise 25.15 (Static) Home Depot's ROI and EVA (LO25-4, LO25-6) Use Home Depot's financial information in Appendix A. Required: a. Compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent. b. Are they improving or declining? Complete this question by entering your answers in the tabs below. Compute the ROI and EVA for the two most recent years reported. Use Net Earnings as a measure of earnings or returns and Net Property and Equipment as the invested capital base. Assume the weighted-average cost of capital is 10 percent. Note: Do not round intermediate calculations. Enter your answers in millions rounded to the nearest whole number (i.e. $12,500,000 should be considered as $13.). Round your percentage answers to 1 decimal place (i.e., 0.123 should be considered as 12.3.)
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