1. Notice that Target had its own credit card business in 2011. In 2012, Target sold of its credit-card receivables to TD Bank for $5.9B. Target continued to service its current credit card customers and maintain its 5% REDcard Rewards program. How might this sale affect shareholder value? In comparing Targets ratios in 2011 to those in 2019, what ratios are likely to be increased/decreased? Why?
2. How can Target increase shareholder value? Can Target increase shareholder value by buying-back shares? Can Target increase shareholder value by selling its stores (for a gain) and leasing them back?