Assigning a Long-Term Debt Rating Using Financial Ratios Refer to the information below from Nordstrom Inc.'s 2016 financial statements. Use the information to answer the requirements (S millions). Sales Depreciation expense Tax expense Interest expense, gross Earnings from continuing operations (Net income) EBITA Cash Average total assets Total debt Noncurrent deferred tax llabllites Noncontral ling interest Equity DMidends paid Cash from operating activities $16,983 626 442 219 896 1,611 661 11,360 3,167 554 71 1,185 2,451 a. Compute the following seven Moody's metrics for Nordstrom. See Appendix 4A for definitions. Round answers to one decimal place(example for percentage answers: 0.2345 23.5%). Ratio 2016 EBITA to average assets 14.2 % Operating margin 12.4 % EBITA margin 9.5 % EBITA interest coverage 7.4 Debt to EBITDA 1.4 Debt to book capitalization 78.4 X % Retained cash flow to net debt 50,5 V % b. Use your computations from part a, along with measures in Exhibit 4.7, to estimate the long-term debt rating for Nordstrom Based on the above computations, the rating for Nordstrom's long-term debt would fall in the A Baa range V