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Evaluating Target Corporation`s Annual Report
I need help with the following assignment. You can go to www.annualreports.com to retrieve Target`s `06 and `07 reports
Prepare a 1,750- to 2,100-word paper,that includes performance ratios based on the company`s last two annual reports and dataavailable on the company`s Web site.
o Compute the eight ratios listed below for two consecutive years. Discuss their significance for management and compare them to industry averages.
? Current Ratio
? Quick Ratio
? Inventory Turnover Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Sales to Inventory)
Debt Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Total Liabilities to Net Worth)
? Net Profit Margin Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on Sales)
? ROI (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on Assets)
? ROE (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on Net)
? Price-to-Earnings Ratio (P/E) Ratio
o Analyze the company`s working capital management. Explain why the company`s operating and cash cycles are currently optimized. If you think they are not optimized, explain why.
o Based on the company`s financial statements, list the long-term debt held by the corporation, maturity dates and yield to maturity. List the types of stock issued by the company, the stocks` current selling price, and the 52-week average selling price.
o Compute the weighted average cost of capital (WACC) for both years and discuss your findings.
o Write a brief analysis that summarizes the data you`ve gathered throughout theweeks and evaluates how your company compares to industry averages.
o Write your recommendations on whether as an investor you should buy this
company`s stock and why.