Question

Please find all of the below information for Target Corporation (TGT) :

• Determine what type of assets the company has to raise funds
  • • Are there any preferred stocks, common stocks, bonds?
    • Are there different classes of stocks?
    • If they have bonds, what have been some of the ratings of these bonds?[1]
    • How many shares outstanding does the company have in the stated years?
      • Differentiate between common and preferred when available
  • When did the company first go public and what was the stock price at the close of that day.
    • If you bought the stock then, what would be your return over the period at December close value?

[1] Go to FINRA website to find this information: Finra.org/marketdata

Answer 1

What type of assets the company has to raise funds:

Are there any preferred stocks, common stocks, bonds?

Since the company is already huge long term debts and capital leases as per the Jan 20 data it would be more feasible for the company in the market to raise the data through preferred stocks or common stocks. It may not be able to raise the raise the funds through bond financing as the company is already having interest payment commitments and further adding more commitments by the company would worsen the profit and loss structure of the company.

Are there different classes of stocks?

Mainly there are two classes of stocks i.e. preferred stocks and common stocks. Other types of stocks are just like a customization created by the company by changing the name of the stock and some features of the stock.

If they have bonds, what have been some of the ratings of these bonds?

Symbol of Bond - Rating:-

TGT.GE: Rating - Moody's®/S&P: A2/A

TGT.GG: Rating - Moody's®/S&P: A2/A

TGT.GI: Rating - Moody's®/S&P: A2/A

TGT.GK: Rating - Moody's®/S&P: A2/A

TGT.GL: Rating - Moody's®/S&P: A2/A

How many shares does the company have outstanding in the stated years?

For TTM: 516 million, As on Jan 2020: 516 million, As on Jan 2019: 533 million, As on Jan 2018: 550 million, As on Jan 2017: 583 million, Jan 2016: 632 million.

Differentiate between the common stock and preferred?

Common stocks have no prefrential right in respect of capital payment as compared to preferred stock. But common stock do have right to share in whole of the profits of the company as compared with preferred with preferentail stock who have only a fixed right in share of the profit.

When did the company first go public and what was the stock price at the close of the day?

Company went public on October 18, 1967 and the stock price was $34.

If you bought the stock then, what would be your return over the period at December close value?

A compound annual return on the stock would be around 11.5% per year.