(Choosing financial targets) Simplicity Company is evaluating their capital structure. The CFO is concerned that the firm might be underleveraged, even though the firm has larger-than-average research and development and foreign tax credits when compared to other firms in its industry. The finance staff prepared the industry comparison shown here. a. Simplicitys objective is to achieve a credit standing that falls, in the words of the chief financial officer, comfortably within the A range. What target range would you recommend or each of the three credit measures? b. Before settling on these target ranges, what other factors should Simplicitys chief financial officer consider? c. Before deciding whether the target ranges are really appropriate for Symplicity in its current financial situation, what key issues specific to Symplicity must the chief financial officer resolve? FUNDS FROM RATING FIXED CHARGE OPERATIONS/ LONG-TERM DEBT/ CATEGORY COVERAG E TOTAL DEBT CAPITALIZATION Aa 4.005.25x 6080% 1723% A 3.004.30 4565 2232 Baa 1.953.40 3555 3041