Fin 550 Milestone 1
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Fin 550 Milestone 1
Jasminlyn Miller
Fin 550
Milestone One
I.
Time Value of Money
Target Corporation is an American retail corporation with 1,909 stores in the United States. Target is the eighth-largest retail store with 75.36 billion dollars’ worth of revenue. “With
more than 368,000 employees and stores in all 50 U.S. states and the District of Columbia, Target Corp. is considered one of the largest retailers in the United States.” (Solutions, 2020). Target is part of the S&P 500 Index. Target’s Earnings per Share in 2020 was $6.36 and is projected at $8.64 for 2021. Target headquarters is in Minneapolis, Minnesota. In 1902, Target was originally founded under the name of Goodfellow Dry Goods
Company, by George D. Dayton. They wanted something different and wanted a place people could have a one-stop shopping experience.
“
Following George D. Dayton's death, son George N. Dayton is named President of The Dayton Company.” (Target). In Roseville, Minnesota, the first Target Store was
opened in 1962 and later its name was changed to Dayton Corporation. It wasn’t until the 2000’s when Target got its name Target. Question 1.
Interest Rate
5%
FCF - Years
2022
2021
2020
FCF in dollars*
$5,108,000 $7,918,000 $4,153,000
Pv*
$(4,864,762)
$(7,540,952
)
$(3,955,238
)
Total Pv*
$(16,360,952
)
*In millions
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O Question 19
O Question 20
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K
A
The Cardstock Manufacturing Division of the Pulp Paper Company reported the following results from
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Operating income
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O A. 81.82%
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O C. 72.73%
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Page 328
EXERCISE 7.9 Industry Characteristics and Collection Performance e LO7-8
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Goodyear
PPL
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$18.1 billion
$ 11.5 billion
Average accounts receivable
2.3 billion
923 million
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Question 6
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The OtherFive Divisions
PercyDivision
Total
Sales
$1,665,000
$100,000
$1,765,000
Cost of goods sold
978,300
76,600
1,054,900
Gross profit
686,700
23,400
710,100
Operating expenses
528,100
50,400
578,500
Net income
$158,600
$ (27,000
)
$131,600
In the Percy Division, cost of goods sold is $60,100 variable and $16,500 fixed, and operating expenses are $29,200 variable and $21,200 fixed. None of the Percy Division’s fixed costs will be eliminated if the division is discontinued.
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