Target Corporation - Memo
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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.
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Solution Summary
Target Corporation operates as large-format general merchandise and food discount stores in the United States, which include Target and Super Target stores. The company offers both everyday essentials and fashionable, differentiated merchandise at exceptional prices. The company was incorporated in Minnesota in 1902 and currently has 1,648 stores and 366,000 employees
Target Corporation is seeking capital and there are two groups which are interested in investing Target. The first group is planning to invest in the equities of the company and the second group is planning to provide loan to Target Corporation. Since the risk and reward involved in both the type of financing are different they will be interested in different set of information. Summarized below is the information which both investors will be interested in:
Attached is the detailed answer.
Education
- Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
- Bachelor of Commerce, West Bengal University
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