Strategic Issue: Target Corporation Long Term Financing

"Strategic" implies long term, as in Strategic Plan. So it is more than just consideration of "this year." Target has a decision to make that has long term impacts. The company has two issues facing it, both of which are in the area of long term financing:

In an approx.5-7pagepaper, consider the above and give your recommendations to Target's board.

Resources to use

Continued

Five suggested sections of the paper

Introduction and short summary of the case (supplied above but in your own words)

Main issues as you see it

What should be considered in making the decision?

Ability of Target to meet your potential choices. Use at leasttwo ratiosto illustrate your thinking

Your proposed method to deal with both issues. Use tables to supplement your narrative so it is clear where your decision falls in terms ofcategoriesandamounts.

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Debt vs. Equity Financing considerations - things to think about

See Chapter 11 for additional information on long term financing considerations