You have the following data on The Home Depot, Inc.
Market value of long-term debt: $20,888...
You have the following data on The Home Depot, Inc.
Market value of long-term debt: $20,888 million
Market value of common stock: $171,138 million
Beta: 1.04
Yield to maturity on debt with 10 years to maturity: 2.167%
Expected return on equity: 8.771%
Marginal tax rate: 35%
Assume that if Home Depot issues new bonds, the bonds will have
10 years to maturity.
Suppose that managers at Home Depot decide to increase the
proportion of debt to 20% of the value...
The income statements for Home Depot, Inc. (HD) spanning the
period 2014-2016 are found below:
2014...
The income statements for Home Depot, Inc. (HD) spanning the
period 2014-2016 are found below:
2014
2015
2016
Earnings before interest and taxes
$7,316,000
$9,700,000
$9,425,000
Interest expense
(696,000)
(392,000)
(143,000)
Income before tax
$6,620,000
$9,308,000
$9,282,000
Income tax expense
(2,410,000)
(3,547,000)
(3,444,000)
Net Income
$4,210,000
$5,761,000
$5,838,000
Calculate the times interest earned ratio for each of the years
for which you have data. What does this ratio tell you about Home
Depot? What is your assessment...
Home Depot, Inc. (HD), had 1244 million shares of common stock
outstanding in 2016, whereas Lowes...
Home Depot, Inc. (HD), had 1244 million shares of common stock
outstanding in 2016, whereas Lowes Companies, Inc. (LOW), had
929 million shares outstanding. Assuming Home Depot's 2016
interest expense is $919 million, Lowes' interest expense is $552
million, and a 34 percent tax rate for both firms, what is their
break-even level of operating income (i.e., the level of EBIT
where EPS is the same for both firms)?
You have the following data on The Home Depot, Inc.
Market value of long-term debt: $20,888...
You have the following data on The Home Depot, Inc.
Market value of long-term debt: $20,888 million
Market value of common stock: $171,138 million
Beta: 1.11
Yield to maturity on debt with 10 years to maturity: 2.99%
You also have the following market data:
Expected annual return on the market portfolio: 8%
Annual risk-free rate: 1%
Assume that if Home Depot issues new bonds, the bonds will have
10 years to maturity. What is the company’s return on assets?
Do...
The Home Depot, Inc. (HD) operates over 2,200
home improvement retail stores and is a competitor...
The Home Depot, Inc. (HD) operates over 2,200
home improvement retail stores and is a competitor of
Lowe's (LOW). The following data (in millions)
were adapted from recent financial statements of The Home
Depot.
Year 2
Year 1
Total assets
$39,946
$40,518
Total liabilities
30,624
27,996
Total stockholders’ equity
9,322
12,522
Earnings per share
$4.74
$3.78
1. Compute the debt ratio for Years 1 and 2.
Round to one decimal place.
Year 2
Year 1
Debt ratio
%
%
2....
Debt and price-earnings ratios
The Home Depot, Inc. (HD) operates over 2,200
home improvement retail stores...
Debt and price-earnings ratios
The Home Depot, Inc. (HD) operates over 2,200
home improvement retail stores and is a competitor of
Lowe's (LOW). The following data (in millions)
were adapted from recent financial statements of The Home
Depot.
Year 2
Year 1
Total assets
$39,946
$40,518
Total liabilities
30,624
27,996
Total stockholders’ equity
9,322
12,522
Earnings per share
$4.74
$3.78
1. Compute the debt ratio for Years 1 and 2.
Round to one decimal place.
Year 2
Year 1
Debt...
Lowe's, Home Depot, and Walmart all sell petunia fertilizer. The
amount of nitrates in each fertilizer...
Lowe's, Home Depot, and Walmart all sell petunia fertilizer. The
amount of nitrates in each fertilizer is 26% for Lowe's, 36% for
Home Depot, and 41% for Walmart. If Bob buys 5 bags from Lowe's, 7
bags from Home Depot, and 5 bags from Walmart and mixes all the
fertilize together, what is the percentage of nitrates in Bob's
petunia fertilizer concotion? Hint: Think of the percentages like
probabilities! Again, 4 decimal places, please.