Question

Hello,

I have a hard time solving this following case. Can anyone please help me to find solution?

Thanks,

Chapter 8 Assignment (Adapted from ATC 8-1 in Text)

Use the Target Corporation Form 10-K to answer the following questions related to Target’s 2017 Fiscal Year. Note that Target’s Fiscal Year ends in late January or early February, so the 2017 Fiscal Year ends February 3, 2018. You will need to use the financial statements as well as notes to the financial statements to answer the questions. Show your calculations.

1. What is the par value per share of Target's common stock (Hint: use the Statement of Financial Position and disclosure at bottom of statement)?
2. How many shares of Target's common stock were outstanding as of the end of FY 2017 (Hint: use the Statement of Financial Position and disclosure at bottom of statement)?
3. Target's annual report provides some details about the company's executive officers. How many are identified? What is their age range? How many are females (Hint: use Item 4A in the 10-K)?
4. How much did Target pay in dividends in FY 2017 and 2016? Show the per share amounts and the total dollar amounts. Comment on the change in the per share amounts over the 3 years. Is this a good use of Target’s funds (Hint: use the Statement of Cash Flow and the “Liquidity and Capital Resources” section of the 10-K beginning on page 26)?
5. How much did Target spend to repurchase common stock in FY 2017 and 2016? Why would a company like Target repurchase their shares? Is this a good use of Target’s funds (Hint: use the Statement of Cash Flow and the “Liquidity and Capital Resources” section of the 10-K beginning on page 26)?

Answer 1

The data figures are extracted from the Form 10k of Target Corporation:

Solution to question a and b. refer item 8 Financial Statements and Supplementary Data

Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 541,681,670 shares issued and outstanding at February 3, 2018; 556,156,228 shares issued and outstanding at January 28, 2017.

Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding at February 3, 2018 or January 28, 2017

Solution to question c:

Brian Cornell	59	2014	Chairman of the Board, Chief Executive Officer
John Mulligan	52	2015	Chief Operating Officer, Executive Vice President
Stephanie Lundquist	42	2016	Chief Human Resource Officer, Executive Vice President
Michael McNamara	53	2016	Executive Vice President, Chief Information & Digital Officer
Rick Gomez	48	2017	Executive Vice President, Chief Marketing Officer
Don Liu	56	2017	Executive Vice President, Chief Legal & Risk Officer, Corporate Secretary
Minsok Pak	49	2017	Executive Vice President, Chief Strategy and Innovation Officer
Janna Potts	50	2016	Executive Vice President, Chief Stores Officer
Mark Tritton	54	2016	Executive Vice President, Chief Merchandising Officer
Laysha Ward	50	2017	Executive Vice President, Chief External Engagement Officer

and cathy r.smith 54  

Age range : 42-59 AND FEMALE EXECUTIVES ARE Stephanie Lundquist,Janna Potts,Laysha Ward,cathy r.smith

Solution d:

Year wise per share dividend and total dividend for 2017,2016 and 2015 are as follows:

Dividends declared per share	$2.46	$2.36	$2.20

increasing every year

Dividends paid	(1,338)	(1,348)	(1,362)

. Solution e:

repurchase of stock for 2017 and 2016 are as follows: yes it is a good use of targets funds.

Repurchase of stock	(1,046)	(3,706)