
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 40
Home Depot ' s ROI and EVA
Use Home Depot 's financial information in Appendix A to 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. Interpret the EVA and ROI numbers. Did these measures improve, or did they decline? Why?
Use Home Depot 's financial information in Appendix A to 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. Interpret the EVA and ROI numbers. Did these measures improve, or did they decline? Why?
Explanation
Refer to the financial statements of H D...
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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