• Determine the cost of debt: Using information from Target's (TGT), annual report, to determine the 'average' rating of your firm's bonds and the current YTM on a composite of these bonds. Based on this information, estimate the current cost of debt for the firm. Explain the approach and procedure you used to make your determination and what this number means.
• Determine the cost of equity: Determine the required rate of return for your firm using the CAPM. Explain the approach and procedure you used (and justification for the sources of inputs used for your model) to make your determination and the meaning of this required rate of return.
• Determine the capital structure of the firm: Determine the market value of the firm's debt and equity. Explain the approach and procedure you used and use these values to determine the weights for the WACC.

Finally, provide an overall explanation for your results and how the firm will use this WACC. There are resources available in the Content area that will help guide your determination of WACC.

• Estimate the firm's stock price using the dividend-discount model: Use an investment source (some have been provided in the Content area) and find: 1) the current dividend; 2) analyst's estimate growth rate for the next five to ten years; 3) an alternative growth estimate using the firm's historical growth rate or the formula "g=ROE x b".
• Use your estimate of the cost of equity in the WACC for the rE part of your formula: Combine the above information into the dividend-discount model (DDM).
• Compare your result to the current market price of your firm's stock.
• Provide analysis and an explanation of how they compare and explain any differences you observe.

Balance Sheet	1/31/2021	1/31/2020	1/31/2019	1/31/2018	1/31/2017	1/31/2016	1/31/2015	1/31/2014	1/31/2013	1/31/2012
Cash on Hand	$8,511,000.00	$2,577,000.00	$1,556,000.00	$2,643,000.00	$2,512,000.00	$4,046,000.00	$2,210,000.00	$670,000.00	$784,000.00	$794,000.00
Receivables	-	-	-	-	-	-	-	-	-	-
Inventory	$10,653,000.00	$8,992,000.00	$9,497,000.00	$8,597,000.00	$8,309,000.00	$8,601,000.00	$8,282,000.00	$8,278,000.00	$7,903,000.00	$7,918,000.00
Other Current Assets	$1,592,000.00	$1,333,000.00	$1,466,000.00	$1,300,000.00	$1,169,000.00	$1,161,000.00	$2,074,000.00	$1,832,000.00	$1,860,000.00	$1,810,000.00
Total Current Assets	$20,756,000.00	$12,902,000.00	$12,519,000.00	$1,250,000.00	$11,990,000.00	$14,130,000.00	$13,624,000.00	$11,573,000.00	$16,388,000.00	$16,449,000.00
Property, Plant, and Equipment	$26,879,000.00	$26,283,000.00	$25,533,000.00	$24,536,000.00	$24,658,000.00	$25,217,000.00	$25,952,000.00	$26,412,000.00	$30,653,000.00	$29,149,000.00
Long-term investments	-	-	-	-	-	-	-	-	-	-
Goodwill And Intanigable Assets	-	-	-	-	-	-	-	-	-	-
Other Long-Term Assets	$1,386,000.00	$1,358,000.00	$1,273,000.00	$2,343,000.00	$783,000.00	$840,000.00	$879,000.00	$1,107,000.00	$1,122,000.00	$1,032,000.00
Total Long-Term Assets	$30,492,000.00	$29,877,000.00	$28,771,000.00	$27,763,000.00	$25,441,000.00	$26,132,000.00	$27,548,000.00	$32,980,000.00	$31,775,000.00	$30,181,000.00
Total Assets	$51,248,000.00	$42,779,000.00	$41,290,000.00	$40,303,000.00	$37,431,000.00	$40,262,000.00	$41,172,000.00	$44,553,000.00	$48,163,000.00	$46,663,000.00
Total Current Liabilities	$20,125,000.00	$14,487,000.00	$15,014,000.00	$13,052,000.00	$1,270,700.00	$12,622,000.00	$11,736,000.00	$12,777,000.00	$14,031,000.00	$1,428,700.00
Long Term Debt	$11,536,000.00	$11,338,000.00	$10,223,000.00	$11,117,000.00	$11,031,000.00	$11,945,000.00	$12,634,000.00	$11,429,000.00	$14,654,000.00	$13,697,000.00
Other Non-Current Liabilities	$1,939,000.00	$1,724,000.00	$1,780,000.00	$1,866,000.00	$1,879,000.00	$1,897,000.00	$1,452,000.00	$1,471,000.00	$1,609,000.00	$1,634,000.00
Total Long Term Liabilities	$16,683,000.00	$16,459,000.00	$14,979,000.00	$15,600,000.00	$13,771,000.00	$14,683,000.00	$15,439,000.00	$15,545,000.00	$17,574,000.00	$16,522,000.00
Total Liabilities	$36,808,000.00	$30,946,000.00	$29,993,000.00	$28,652,000.00	$26,478,000.00	$27,305,000.00	$27,175,000.00	$28,322,000.00	$31,605,000.00	$30,809,000.00
Common Stock Net	$42,000.00	$42,000.00	$43,000.00	$45,000.00	$46,000.00	$50,000.00	$53,000.00	$53,000.00	$54,000.00	$56,000.00
Retained Earnings(Accumulated Deficit )	$8,825,000.00	$6,433,000.00	$6,017,000.00	$6,495,000.00	$5,884,000.00	$8,188,000.00	$9,644,000.00	$12,599,000.00	$13,155,000.00	$12,959,000.00
Comphrehensive Income	-$756,000.00	-$868,000.00	-$805,000.00	-$747,000.00	-$638,000.00	-$629,000.00	-$599,000.00	-$891,000.00	-$576,000.00	-$681,000.00
Other Share Holders Equity	-	-	-	-	-	-	-	-	-	-
Share Holder Equity	$14,440,000.00	$11,833,000.00	$11,297,000.00	$11,651,000.00	$10,953,000.00	$12,957,000.00	$13,997,000.00	$16,231,000.00	$16,558,000.00	$15,821,000.00
Total Liabilities and Share Holders Equity	$51,248,000.00	$42,779,000.00	$41,290,000.00	$40,303,000.00	$37,431,000.00	$40,262,000.00	$41,172,000.00	$44,553,000.00	$48,163,000.00	$46,630,000.00

Income Statement	1/31/2021	1/31/2020	1/31/2019	1/31/2018	1/31/2017	1/31/2016	1/31/2015	1/31/2014	1/31/2013	1/31/2012
Revenue	$93,561,000.00	$78,112,000.00	$75,356,000.00	$72,714,000.00	$70,271,000.00	$73,785,000.00	$72,618.00	$71,279,000.00	$73,301,000.00	$69,865,000.00
Cost of Goods Sold	$66,177,000.00	$54,864,000.00	$53,299,000.00	$51,125,000.00	49125000	52241000	$51,278,000.00	$50,039,000.00	$51,035,000.00	$48,306,000.00
Gross Profit	$27,384,000.00	$23,248,000.00	$22,057,000.00	$20,754,000.00	21126000	21544000	$21,340,000.00	$21,240,000.00	$22,266,000.00	$21,559,000.00
Research and Development Expenses	-	-	-	-	-	-	-	-	-	-
SG&A Expenses	$18,615,000.00	$16,233,000.00	$15,723,000.00	$15,140,000.00	$14,217,000.00	$14,665,000.00	$14,676,000.00	$14,465,000.00	$14,643,000.00	$14,106,000.00
Other Operating Income or Expenses	-	-	-	-	-	$620,000.00	-$391.00	-	-	-
Operating Expense	$87,022,000.00	$73,454,000.00	$71,246,000.00	$68,490,000.00	$65,407,000.00	$68,255,000.00	$68,083,000.00	$66,109,000.00	$67,722,000.00	$64,543,000.00
Operating Income	$6,539,000.00	$4,658,000.00	$4,110,000.00	$4,224,000.00	$4,864,000.00	$5,530,000.00	$4,535,000.00	$5,170,000.00	$5,579,000.00	$5,322,000.00
Total Non-Operating Income/Expense	-$993,000.00	-$468,000.00	-$434,000.00	-$594,000.00	-$903,000.00	-$607,000.00	-$882.00	-$1,049.00	-$523.00	-$866.00
Pre-tax Income	$5,546,000.00	$4,190,000.00	$3,676,000.00	$3,630,000.00	$3,961,000.00	$4,923,000.00	$3,653.00	$4,121.00	$5,056.00	$4,456.00
Icome Taxes	$1,178,000.00	$921,000.00	$746,000.00	$722,000.00	$1,295,000.00	$1,602,000.00	$1,204.00	$1,427.00	$1,741.00	$1,527.00
Income After Taxes	$4,368,000.00	$3,269,000.00	$2,930,000.00	$2,908,000.00	$2,666,000.00	$3,321,000.00	$2,449.00	$2,694.00	$3,315.00	$2,929.00
Other income	-	-	-	-	-	-	-	-	-	-
Income From Continuous Operations	$4,368,000.00	$3,269,000.00	$2,930,000.00	$2,908,000.00	$2,666,000.00	$3,321,000.00	$2,449.00	$2,694.00	$3,315.00	$2,929.00
Income From Discontinued Operations	-	$12,000,000.00	$7,000,000.00	$6,000,000.00	$68,000,000.00	$42,000,000.00	-$4,085.00	-$723.00	-$316.00	-
Net Income	$4,368,000.00	$3,281,000.00	$2,937,000.00	$2,914,000.00	$2,734,000.00	$3,363,000.00	-$1,636.00	$1,971.00	$2,999.00	$2,929.00
EBITDA	$9,024,000.00	$7,262,000.00	$6,584,000.00	$6,700,000.00	$7,182,000.00	$7,743,000.00	$6,664.00	$7,166.00	$7,623.00	$7,453.00
EBIT	$6,539,000.00	$4,658,000.00	$4,110,000.00	$4,224,000.00	$4,864,000.00	$5,530,000.00	$4,535.00	$5,170.00	$5,579.00	$5,322.00
Basic Shares Outstanding	501	511	529	547	578	628	635	6335	657	679
Shares Outstanding	505	516	533	550	583	633	640	642	663	684
Basic EPS	$8.72	$6.42	$5.55	$5.32	$4.73	$5.35	-$2.58	$3.10	$4.57	$4.31
EPS-Earnings Per Share	$8.64	$6.36	$5.51	$5.29	$4.69	$5.31	-$2.56	$3.07	$4.52	$4.28