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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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