Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for

Question:

Target prepares its according to U.S. GAAP. Target's and disclosure notes for the year ended January 30, 2016, are available in Connect. This material is also available under the Investor Relations link at the company's website (www.target.com). Target's share-based compensation includes several long-term incentive plans. Long-term refers to a company's ability to pay its long-term obligations. Financing ratios provide investors and creditors with an indication of this element of risk.
Required:
1. Calculate the debt to equity ratio for Target at January 30, 2016. The average ratio for companies in the General Retailers industry sector in a comparable time period was 1.6. What information does your calculation provide an investor?
2. Calculate Target's times interest earned ratio for the year ended January 30, 2016. The coverage for companies in the General Retailers industry sector in a comparable time period was 10.6. What does your calculation indicate about Target's risk?
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