25 Nov Calculate the economic value added assuming its cost of capital
At the end of 2011 Home Depot’s total capitalization amounted to $29,031 million. In 2012 debt investors received interest income of $648 million. Net income to shareholders was $4,487 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Give your answer in millions rounded to 2 decimal places.)
The payment received by an individual or a firm or business entity for any work performed or sale done is the income. Income varies from person to person based on the work done. In a business, more is the income, more will be the profits earned.
