This document provides a comprehensive solution to an EMBA 602 finance assignment focused on the valuation of Home Depot (HD). The assignment includes the calculation of the company's Weighted Average Cost of Capital (WACC) using the Capital Asset Pricing Model (CAPM) and relevant market data such as the market risk premium, beta, bond ratings, and yield spreads. The solution presents a detailed statement of cash flows, analyzing cash flow from operating, investing, and financing activities. It then proceeds to compute the free cash flow (FCF) based on Home Depot's income statement data, including EBIT, taxes, depreciation, and changes in working capital. The assignment also addresses the valuation of a Crafts business acquisition, determining the break-even price per share. Finally, the document includes an analysis of Orion and Aldebaran, including their balance sheets and income statements, along with key financial ratios like the price-to-earnings ratio, price-to-book ratio, price-to-revenue, and enterprise value to EBITDA. These calculations are designed to provide a holistic financial analysis and valuation of the companies involved.
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