Following are financial statement numbers and select ratios forTarget Corp. for the fiscal year 2016 (ending January 28,2017).
Forecast assumptions and other financial information for Targetare as follows: Use the residual operating income (ROPI) model to estimate thevalue of Target’s equity, per share at fiscal year-end.
Target Corp. shares closed at $53.82 per share on March 8, 2017,the date the 10-K was filed with the SEC. How does your valuationcompare with this closing price? . .
Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125million to build. When the company issues new equity, it incurs a flotation costof 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises allequity externally? ** all work and steps must be shown for credit** . . .