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Refer to Target Corporation's financial statements

Refer to Target Corporation's financial statements (http://investors.target.com/phoenix.zhtml?p=irol-irhome&ref=nav%5Ffooter%5Finvestors&c=65828) .

Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital.

Company #1 is interested in investing in the organization and, therefore, would like to have part ownership through the sale of new stock.
Company #2 is interested in providing a loan to the Target Corporation.
Both organizations need to know more about the financial stability of Target.

As an employee of Target, your supervisor needs you to write a memo in which you explain what information from the Target Corporation's financial statements will be highlighted when representatives of Target meet with each of these companies. In your memo, be sure to explain which information will be highlighted to Company #1 and which information will be highlighted to Company #2 and why. Explain any differences in the information that you have chosen to highlight.

Solution Preview

I have completed the ratio analysis in the attached Excel file.

Companies who want to invest into Target will be interested in knowing about the profitability of the organization and the return that the Target is giving to its shareholders.

The profitability ratios, indicates a company's financial health and how effectively the firm is being managed to earn a satisfactory profit. The profitability ratios, indicates a company's financial health and how effectively the firm is being managed to earn a satisfactory profit and return on investment. Target's net profitability has increased to 4.68% in 2007 from 4.3% in 2004. Though its lower than 2005 levels. The gross ...

Solution Summary

The solution provides detailed explanations and instructions, including a ratio analysis in Excel format.

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