Question 3 Partially correct Mark oso out of 4.00 Flag question Sales 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 (5 millions) $14,095 Depreciation expense 560 Tax expense 376 Interest expense, grass Earnings from continuing operations (Net incomel 600 EBITA Casit 595 Average total assets Total debi 8,072 2.805 Equity 1.185 Noncurrent deferred tax liabilities Noncontrolling interest 871 Dividends paid Cash from operating activities 2.45 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 LO average assets 0.13183 Operating margin 0 % EBITA margin OX EBITA Interest coverage Os Debt to EBITDA OX Debt to book capitalization 0% * Retained cash flow to net debt 096 x 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 Check You have correctly selected 1