4-40 EXERCISES Assigning a Long-Term Debt Rating Using Financial Ratios answer the requirements (S millions). Refer to the information below from Nordstrom Inc.'s 2016 financial statements. Use LO3, 4 MB Interest expense, gross Earnings from continuing operations (Net income) EBITA . Cash... 153 600 595 Total debt 2,805 deferred tax liabilities 324 871 2,451 interest paid ..1,185 Cash from ng Required Compute the following seven Moody's metrics for Nordstrom. See Appendix 4A for definitions. a. Operating margin EBITA margin EBITA interest coverage Debt to EBITDA Debt to book capitalization Retained cash flow to net debt 7, to estimate the long-term debt rating for Nordstrom