(Chapter 4) Please answer all the questions with a red X by them. Thank you!

Assigning a Long-Term Debt Rating Using Financial Ratios Refer to the information below from Nordstrom Inc.'s 2016 financial statements. Use the information to answer the requirements ($ millions). Sales Depreciation expense Tax expense Interest expense, gross Earnings from continuing operations (Net income) EBITA Cash Average total assets Total debt Noncurrent deferred tax liabilities Noncontrolling interest Equity Dividends paid Cash from operating activities $15,093 578 394 685 1,256 613 9,470 2,908 391 871 1,185 2,451 a. Compute the following seven Moody's metrics for Nordstrom. See Appendix 4A for definitions. Round answers to one decimal place (example for percentage answers: 0.2345 23.56). Ratio 2016 EBITA to average assets Operating margin EBITA margin 0 x 96 EBITA interest coverage Debt to EBITDA Debt to book capitalization Retained cash flow to net debt 0 x 96 b. Use your computations from part a, along with measures in Exhibit 4.7, to estimate the long-term debt rating for Nordstrom Based on the above computations, the rating for Nordstrom's long-term debt would fall in the A-Baa range Check