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Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes...

Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This material is also available under the Investor Relations link at the company's website (www.target.com). Target's share-based compensation includes several long-term incentive plans.

Required:

1. Over how many years is the compensation associated with Target's share-based awards expensed?

2. Based on the fair value of the awards, what was Target's primary form of share-based compensation for the year ended January 30, 2016?

3. If projecting Target's earnings per share based solely on EPS reported over the most recent three years, would you project increasing or decreasing EPS?

4. How many shares were included in diluted earnings per share but not basic earnings per share due to share-based compensation awards?

Solutions

Expert Solution

solution:

1.

The offer based remuneration plan is expensed by the organization utilizing the straight line strategy over the shorter of the vesting time frame or the base required administration time frame.

For the most part the period is 3 years.

2.

Target's essential type of offer based pay was through limited stock units and execution based confined stock units.

3.

Target's EPS in 2015 is the most astounding when contrasted with 2014 which is least and 2016 which is higher than the EPS of 2014 yet lower than the EPS of 2015.

In light of this data I would extend an expanding EPS.

4.

In light of the yearly report, 4.9 million, 5.2 million and 5.1 million offers for the years 2016,2015 and 2014 separately were added to compute the weakened EPS identified with offer based pay designs

ekkarill92 answered 2 years ago
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