Compute targets roe for the year ending january 29 2011

Reference no: EM13595419

1) Compute the ratios in the exhibit on page 3 for Target and Walmart for 2010. The financial statements can be found in the annual report - visit each company's website, then go to investor relations to access the online report. For both companies, assume that all sales are credit sales. Compare the ratios of Target and Walmart. Which company do you think is doing a better job in managing the following? Explain your answers.

Liquidity
Net income or loss
Financing with debt or equity
Investing in assets
Rewarding its stockholders

2) Compute Target's ROE for the year ending January 29, 2011, including the elements of net income/sales, sales/average total assets, and average total assets/average stockholders' equity. What does this analysis tell you about how Target generates its ROE?

3) What are Target's dividends per share and dividend payout ratio for the last two years? Why do you think Target pays a dividend? How do you think Target determines the amount of dividend they will pay?

4) Given Target's stock price was $50 per share at the end of January 2011, what was Target's PE ratio as of that date? If the average PE for companies is 15, what does this tell you the market is saying about Target's future?

5) Research Target for any important issues including ethical issues which it may have had to deal with in the last three years - evaluate the company's response to these issues.

6) Looking back over your answers to questions 1 - 5, how do you think Target is performing? What is the short term (one year) and long run (five+ year) financial outlook Target? Would you buy the stock of Target? If so, why? If not, why not? On the other hand, if you were a commercial banker, would you lend money to this company? Support your conclusions with a summary of your research and analysis.

7) Do you have any ideas of how to improve Target's performance and its value?

Reference no: EM13595419

Questions Cloud

The same mass of solute is dissolved in 982 g of t-butanol : mass of solvent134.4 gmolthe same mass of solute is dissolved in 9.82 g of t-butanol instead of cyclohexane. what is

Silver has two stable isotopes with masses of 10690509 amu : silver has two stable isotopes with masses of 106.90509 amu and 108.9047 amu. the average molar mass of silver is

Name a metal that could be used in a future experiment to : name a metal that could be used in a future experiment to extract the copper from the copper ii nitrate solution.here

State the order with respect to each reactant and the : state the order with respect to each reactant and the overall order of the reaction for the following rate

Compute targets roe for the year ending january 29 2011 : 1 compute the ratios in the exhibit on page 3 for target and walmart for 2010. the financial statements can be found

Consider the following projects x and y where the firm can : q1. project alpha requires an outlay of 10000 immediately. project alpha has a 1-year life and is expected to produce a

Gallium has an average atomic mass of 697 amu in a typical : gallium has an average atomic mass of 69.7 amu. in a typical sample 60.4 of ga exists as ga-69 68.9257 amu. what is the

Calculate the final temperature once the ice has melted of : calculate the final temperature once the ice has melted of a mixture made up initially of 75.0 ml liquid water at 29.0

In what type of material is the energy gap between the : in what type of material is the energy gap between the valence and the conduction band the greatest? na ge or diamond.

User Account

All Pages