Read the Data Case and answer the questions 1 through 6 based on your textbook readings and Internet research.
You will need to use the following link to complete your assignment and access NASD Bond Info:http://finra-markets.morningstar.com/BondCenter/Default.jsp
You need to download balance sheet and income statement of Home Depot from :
http://finra-markets.morningstar.com/MarketData/CompanyInfo/detail.jsp?query=14:0P000002OY
Simply go to financials.
Attached file is a case.
Solve everything in Excel please, including written parts (at least 5 sentences per question )
Solutions Solutions to Ch. 15 Data Case 1Average Tax Rate35.63% New Debt1,000,000,0005New Debt5,000,000,000 2PV Tax Shield356,269,377PV Tax Shield1,781,346,884 3Market Value of EquityMarket Value of Equity # shares1,510,000,000# shares1,510,000,000 St. Price61.7793,272,700,000St. Price61.7793,272,700,000 3bNew Mkt Value of Equity93,628,969,377before repurchNew Mkt Value of Equity95,054,046,884before repurch 92,628,969,377after repurch90,054,046,884after repurch # Shares Repurchased16,127,487# Shares Repurchased79,428,496 3cNew Share Price$62.01New Share Price$62.95 Shares Outstanding1,493,872,513Shares Outstanding1,430,571,504 4Book Debt/Equity0.6976Book Debt/Equity1.2241 Market Debt/Equity0.1273Market Debt/Equity0.1753 Statements Income Statements Period Ending:1/29/20121/30/20111/31/20101/2/09 Total Revenue$70,395,000$67,997,000$66,176,000$71,288,000 Cost of Revenue$46,133,000$44,693,000$43,764,000$47,298,000 Gross Profit$24,262,000$23,304,000$22,412,000$23,990,000 Operating Expenses Sales, General and Admin.$16,028,000$15,849,000$15,902,000$17,846,000 Other Operating Items$1,573,000$1,616,000$1,707,000$1,785,000 Operating Income$6,661,000$5,839,000$4,803,000$4,359,000 Add'l income/expense items$13,000($36,000)($145,000)($145,000) Earnings Before Interest and Tax$6,674,000$5,803,000$4,658,000$4,214,000 Interest Expense$606,000$530,000$676,000$624,000 Earnings Before Tax$6,068,000$5,273,000$3,982,000$3,590,000 Income Tax$2,185,000$1,935,000$1,362,000$1,278,000 Net Income-Cont. Operations$3,883,000$3,338,000$2,620,000$2,312,0000.36008569550.36696377770.34203917630.3559888579 Net Income$3,883,000$3,338,000$2,661,000$2,260,0000.3562693769 Net Income Applicable to$3,883,000$3,338,000$2,661,000$2,260,000 Common Shareholders Balance Sheet Period Ending:1/29/20121/30/20111/31/20101/2/09 Current Assets Cash and Cash Equivalents$1,987,000$545,000$1,421,000$519,000 Short Term Investments$0$0$0$6,000 Net Receivables$1,245,000$1,085,000$964,000$972,000 Inventory$10,325,000$10,625,000$10,188,000$10,673,000 Other Current Assets$963,000$1,224,000$1,327,000$1,192,000 Total Current Assets$14,520,000$13,479,000$13,900,000$13,362,000 Long Term Assets Long Term Investments$135,000$139,000$33,000$36,000 Fixed Assets$24,448,000$25,060,000$25,550,000$26,234,000 Goodwill$1,120,000$1,187,000$1,171,000$1,134,000 Intangible Assets$0$0$0$0 Other Assets$295,000$260,000$223,000$398,000 Total Assets$40,518,000$40,125,000$40,877,000$41,164,000 Current Liabilities Accounts Payable$8,199,000$7,903,000$8,185,000$8,221,000 Short Term Debt/Current Portion of Long Term Debt$30,000$1,042,000$1,020,000$1,767,000 Other Current Liabilities$1,147,000$1,177,000$1,158,000$1,165,000 Total Current Liabilities$9,376,000$10,122,000$10,363,000$11,153,000 Long Term Debt$10,758,000$8,707,000$8,662,000$9,667,000 Other Liabilities$2,146,000$2,135,000$2,140,000$2,198,000 Deferred Liability Charges$340,000$272,000$319,000$369,000 Total Liabilities$22,620,000$21,236,000$21,484,000$23,387,000 Stock Holders Equity Common Stocks$87,000$86,000$86,000$85,000 Capital Surplus$6,966,000$6,556,000$6,304,000$6,048,000 Retained Earnings$17,246,000$14,995,000$13,226,000$12,093,000 Treasury Stock($6,694,000)($3,193,000)($585,000)($372,000) Other Equity$293,000$445,000$362,000($77,000) Total Equity$17,898,000$18,889,000$19,393,000$17,777,000 Sheet3