Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available here (https://corporate.target.com/annual-reports/2017/10-K/10-k-cover). This material is also available under the Investor Relations link at the company’s website (www.target.com).

Required:

1. By what name does Target label its balance sheet?

2. What amounts did Target report for the following items on February 3, 2018?

3. What was Target’s largest current asset? What was its largest current liability?

4. Compute Target’s current ratio and debt to equity ratio in 2018? (Round your answers to 2 decimal places. Enter your answers in millions, not in dollars (i.e., 10,00,000 should be entered as 10).)

5. Assuming Target’s industry had an average current ratio of 1.0 and an average debt to equity ratio of 2.5, comment on Target’s liquidity and long-term solvency.

1. A new car is tested on a 290-m-diameter track. If the car speeds up at a steady 1.2 m/s2 , how long after starting is the magnitude of its centripetal acceleration equal to the tangential acceleration? Express your answer to two significant figures and include the appropriate units.

2. A concrete highway curve of radius 80.0 m is banked at a 15.0 ∘ angle.

Part A: What is the maximum speed with which a 1300 kg rubber-tired car can take this curve without sliding? (Take the static coefficient of friction of rubber on concrete to be 1.0.) Express your answer with the appropriate units.

3. A 4 kg ball swings in a vertical circle on the end of an 80-cm-long string. The tension in the string is 20 N when its angle from the highest point on the circle is θ=30∘.

Part A: What is the ball's speed when θ=30∘? Express your answer to two significant figures and include the appropriate units.

Part B: What is the magnitude of the ball's acceleration when θ=30∘? Express your answer to two significant figures and include the appropriate units.

Part C: What is the direction of the ball's acceleration when θ=30∘? Give the direction as an angle from the r-axis. Express your answer to two significant figures and include the appropriate units.

WACC and Optimal Capital Structure

F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indicated that the pre-tax cost of debt under various possible capital structures would be as follows:

* Use the exact value of 2/3 in your calculations.

F. Pierce uses the CAPM to estimate its cost of common equity, r_s and at the time of the analaysis the risk-free rate is 7%, the market risk premium is 8%, and the company's tax rate is 35%. F. Pierce estimates that its beta now (which is "unlevered" because it currently has no debt) is 1.2. Based on this information, what is the firm's optimal capital structure, and what would be the weighted average cost of capital at the optimal capital structure? Do not round intermediate calculations. Round your answers to two decimal places.

Debt:   %
Equity:   %
WACC:   %

Given here are the data from a dependent variable and two independent variables. The second independent variable is an indicator variable with several categories. Hence, this variable is represented by x₂, x₃, and x₄. How many categories are there for this independent
variable? Use a computer to perform a multiple regression analysis on this data to predict y from the x values. Discuss the output and pay particular attention to the dummy variables.

Appendix A Statistical Tables

Number of categories =

.

The regression equation is: y− =

+

x1 +

x2 -

x3 -

x4 (Round answers to 3 decimals.)

Quinine, C20H24N2O2, occurs naturally in the bark of the cinchona tree and was the first effective treatment for malaria. It is a diprotic base with Kb values of (the acidic protons are shown in red) C20H24N2O2 + H2O HC20H24N2O2+ + OH- Kb2 = 1.0 × 10-6 HC20H24N2O2+ + H2O H2C20H24N2O22+ + OH- Kb1 = 1.58 × 10-10

a) The recommended IV dose of quinine is 0.800 g/kg, that is, 0.800 g of quinine per 1 kg of water. If we assume that the density of the solution is 1.00 g/mL, what is the pH of this solution? The molar mass of quinine is 324.412 g/mol. For simplicity, abbreviate C20H24N2O2 as Q.

b) 100 mL of the solution from part a is then titrated with a solution of 0.010 M HCl. How many mL of HCl solution is required to reach the first equivalence point?

c) What is the pH at the first equivalence point?

d) What is the pH when 32.00 mL of HCl has been added?

e) What is the pH at the second equivalence point?

f) Quantitatively draw the resulting titration curve on the axes below. Be sure to label both axes, equivalence points and buffer regions. Be as accurate as use can and make use of your results for parts a-e. g) The pH in the stomach is often quite low, between 2 and 3. What species of quinine is predominant at a pH of 2.5?

h) The pH of blood is buffered at 7.4. What species of quinine is predominant at this pH?

1. (a) What is the Na⁺ concentration in each of the following solutions:

2.85 M sodium sulfate:

2.18 M sodium carbonate:

0.985 M sodium bicarbonate:

(b) What is the concentration of a lithium carbonate solution that is 0.395 M in Li⁺? M

2. A sample of 0.7160 g of an unknown compound containing barium ions (Ba²⁺) is dissolved in water and treated with an excess of Na₂SO₄. If the mass of the BaSO₄ precipitate formed is 0.6894 g, what is the percent by mass of Ba in the original unknown compound?

3. A 0.9080 g sample of a mixture of NaCl and KCl is dissolved in water, and the solution is then treated with an excess of AgNO₃ to yield 1.953 g of AgCl. Calculate the percent by mass of each compound in the mixture.

% mass NaCl

% mass KCl

4. The concentration of lead ions (Pb²⁺) in a sample of polluted water that also contains nitrate ions (NO₃⁻) is determined by adding solid sodium sulfate (Na₂SO₄) to exactly 500 mL of the water. Calculate the molar concentration of Pb²⁺ if 0.00260 g of Na₂SO₄ was needed for the complete precipitation of lead ions as PbSO₄.

5. Consider the reaction

H₂(g) + Cl₂(g) → 2HCl(g) Δ H = −184.6 kJ/mol

If 5.0 moles of H₂ reacts with 5.0 moles of Cl₂ to form HCl at 1.0 atm, what is Δ U for this reaction? Assume the reaction goes to completion and Δ V = 0 L.
(The conversion factor is 1 L atm = 101.3 J.)

F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indicated that the pre-tax cost of debt under various possible capital structures would be as follows:

* Use the exact value of 2/3 in your calculations.

F. Pierce uses the CAPM to estimate its cost of common equity, r_s and at the time of the analaysis the risk-free rate is 7%, the market risk premium is 8%, and the company's tax rate is 40%. F. Pierce estimates that its beta now (which is "unlevered" because it currently has no debt) is 1. Based on this information, what is the firm's optimal capital structure, and what would be the weighted average cost of capital at the optimal capital structure? Do not round intermediate calculations. Round your answers to two decimal places.

Debt:   %
Equity:   %
WACC:   %

F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indicated that the pre-tax cost of debt under various possible capital structures would be as follows:

* Use the exact value of 2/3 in your calculations.

F. Pierce uses the CAPM to estimate its cost of common equity, r_s and at the time of the analaysis the risk-free rate is 7%, the market risk premium is 8%, and the company's tax rate is 40%. F. Pierce estimates that its beta now (which is "unlevered" because it currently has no debt) is 1. Based on this information, what is the firm's optimal capital structure, and what would be the weighted average cost of capital at the optimal capital structure? Do not round intermediate calculations. Round your answers to two decimal places.

Debt:   %
Equity:   %
WACC:   %

At a recent seminar you attended, the invited speaker was discussing some of the advantages and disadvantages of standard costs in terms of evaluating performance and motivating goal-congruent behavior on the part of employees. One criticism of standard costs in particular caught your attention: The use of conventional standard costs may not provide appropriate incentives for improvements needed to compete effectively with world-class organizations. The speaker then discussed so-called continuous-improvement standard costs. Such standards embody systematically lower costs over time. For example, on a monthly basis, it might be appropriate to budget a 1.0% reduction in per-unit direct labor cost.

Assume that the standard wage rate into the foreseeable future is $25 per hour. Assume, too, that the budgeted labor-hour standard for October of the current year is 2.00 hours and that this standard is reduced each month by 2%. During December of the current year the company produced 8,800 units of XL-10, using 17,300 direct labor hours. The actual wage rate per hour in December was $29.00.

Required:

1. Prepare a table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the 4 months, October through January.

2. Compute the direct labor efficiency variance for December. Was this variance favorable (F) or unfavorable (U)?