Question
As a member of the capital expenditure committee, would you continue to approve capital project requests if it meant that Target would need to fund
As a member of the capital expenditure committee, would you continue to approve capital project requests if it meant that Target would need to fund their requests with external funds, either debt or equity? Support your argument with debt and liquidity ratios.
Table XYZ: This table reports Target Corporation debt and liquidity ratios.
| |||
Ratios\Years | 2006 | 2005 | 2004 |
Total Liabilities /Total assets | .59408 | .59654 | .64566 |
Total Debt / Total Assets | 0.534562 | 0.534295 | 0.587885 |
Total Debt /Total Equity | 1.316931 | 1.324277 | 1.659091 |
TIE (EBIT /Interest Expense) | 9.336933 | 6.317544 | N/A |
Current Ratio | 1.502399 | 1.693674 | 1.557854 |
Quick Ratio | 0.762829 | 0.889781 | 0.640967 |
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