Use Home Depots financial information in Appendix A to compute the ROI and EVA for 2008 and

Question:

Use Home Depot’s financial information in Appendix A to compute the ROI and EVA for 2008 and 2009. Use Net Earnings from page A-4 to measure earnings or returns and Net Property and Equipment from page A-5 as the invested capital base. Assume the weighted-average cost of capital is 10 percent. Interpret the EVA and ROI numbers for Home Depot between 2008 and 2009. Are they improving or declining? Why?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...