Target vs Walmart

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Overview of Target Corporation versus Wal-Mart Inc. Overview This paper will give a summary of Target corporation versus Wal-Mart stores, Incorporated. In the following weeks it will compare the financial performances of these two companies, by evaluating circumstances such as the times interest earned, return on equity, return on assets and other factors. This paper will present an overview of the exchanges on which both company’s stock is traded. It will also present characteristics of that particular exchange which may have led the company to be listed there versus another exchange. This summary will also explain the types of securities both Wal-Mart and Target have outstanding, such as the bonds, preferred stock or the common…show more content…
and Wal-Mart Stores, Inc. to raise capital. Each company has bonds, preferred and common stock; to help in determining if capital should be raised. According to Block and Hirt (2005), bonds are debt instruments that have a fixed life and must be repaid at maturity. Preferred stock is the leased used because the dividends are not tax-deductible. Common Stock is sold because companies are seeking new equity capital. For Target, the peak from November to the end of December is when the company’s working capital is at its greatest. Based on the Annual Report for 2007, the increase in working capital during this time is typically financed with cash flow from operations and short-term borrowing. Target’s common stock has increased from the year 2003-2007, but decrease from 2007-2008 (fiscal years ending in February). Every stock and bond affects the equity of the company. Target wants to minimize there borrowing cost by ensuring liquidity and access to capital markets, to keep the balance of debt maturities under control, and manage net exposure to float interest rates. The 2007 annual report shows as of February 2, 2008 the number of securities to be issued upon exercise of outstanding options was 30,552,976 and the number remaining available for future issuance was 36,190,569. Wal-Mart has an increase on per share of common stock, between 2005-2007. Based on the annual report of Wal-Mart for 2007, the company generally has a working capital deficit due to the

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