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The Financial Analysis of Home Depot

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Submitted By pamela42
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The Financial Analysis of The Home Depot

By: The CPT Consulting Group
10-3-11

CPT Consulting Group

Table of Contents

I. Introduction II. Board of Directors and Corporate Governance III. WACC and Capital Structure IV. Degree of Operating leverage V. Dividends VI. Conclusions VII. Appendix

I. Introduction The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. The home depot Inc., collectively with its subsidiaries, operates as a home improvement retailer. The company sells a wide variety of building materials, home improvement products, and lawn and garden products for the do-it-your-self customer, the do-it-for-me customer, and the professional customer. Today The Home Depot provides installation options for: carpeting, tile flooring, cabinets, water heaters, furnaces, and central air systems to name a few. The founders’ originally had a vision of a one stop shopping store for the do-it–your- self customer, and later went on to expand the business into the do-it-for-me customer. Mr. Marcus and Mr. Blank opened the first Home Depot store on June 22, 1979 in Atlanta, Georgia. In 1981, the company went public on NASDAQ and moved to the New York Stock Exchange (NYSE:HD) in 1984. The Home Depot, Inc. is the world's largest home improvement specialty retailer and the fourth largest retailer in the United States with fiscal 2010 retail sales of $68.0 billion and earnings from continuing operations of $3.3 billion. The Home Depot has more than 2,200 retail stores in the United States (including Puerto Rico and the U.S. Virgin Islands and the territory of Guam), Canada, Mexico and China. In 2010, The Home Depot was ranked No. 29 on the Fortune 500 U.S. list and is also included in the Dow Jones industrial average and Standard & Poor's 500 index. Since its formation in 2002, The Home Depot Foundation

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