EXHIBIT 3 I Target Income Statements ($ millions)

Fiscal Year Ending 28 Jan 2006 29 Jan 2005

Net revenues 52,620.00 46,839.00

Cost of goods sold 34,927.00 31,445.00
Depreciation,depletion, and amortization 1,409.00 1,259.00
Gross income 16,284.00 14,135.00
Selling, general,and, admin expenses 11,961.00 10,534.00
Earnings before interest and taxes (EBIT) 4,323.00 3,601.00
Net interest expense 463.00 570.00
Pretax income 3,860.00 3,031.00
Income taxes 1,452.00 1,146.00
Net income before extra items 2,408.00 1,885.00
Gain (loss) sale of assets 1,313.00
Net income after extra items 2,408.00 3,198.00
Capital expenditures (net of disposals) 3,330.00 3,012.00
Capital expenditures/sales 6.3% 6.4%

Source: Target Corp.annualreports.

 EXHIBIT 4 I Balance Sheet Statements ($ millions)
FiscalYear Ending 28-Jan-06 29-Jan-05 31-Jan-04

Assets

Cash and cash equivalents 1,648 2,245 708

Accounts receivable (net) 5,666 5,069 4,621
Inventory 5,838 5,384 4,531
Other current assets 1,253 1,224 3,092
Total current assets 14,405 13,922 12,952
Property plant and equipment, net 19,038 16,860 15,153
Other assets 1,552 1,511 3,311
Total assets 34,995 32,293 31,416

Liabilities

Accounts payable 6,268 5,779 4,956

Current portion of LT debt and notes payable 753 504 863
Income taxes payable 374 304 382
Other current liabilities 2,193 1,633 2,113
Total current liabilities 9,588 8,220 8,314
Long-term debt 9,119 9,034 10,155
Other liabilities 2,083 2,010 1,815
Total liabilities 20,790 19,264 20,284

Shareholders' equity

Common equity 2,192 1,881 1,609

Retained earnings 12,013 11,148 9,523
Total shareholders' equity 14,205 13,029 11,132
Total liabilities and shareholders' equity 34,995 32,293 31,416

Source:Target Corp.annualreports.
 Ratio Analysis

Market Data 24-Oct-08

Beta 1.05
Debt Rating A+
Basic Eps $2.73

28 Jan 2006 29 Jan 2005 Remark

Liquidity

A decrease in both the current ratio and quick ratio may

Current Ratio 1.502 1.694 indicate that the company is facing challenges in managing
its short-term liquidity and may have difficulty meeting its
financial obligations, such as paying suppliers or lenders.
Quick Ratio 0.894 1.039

Asset Management

An increase in the Inventory Turnover ratio indicates that

the company is selling its inventory more quickly, which
Inventory Turnover 5.983 5.840 can be a sign of good inventory management practices.
This can lead to better cash flow management and less
inventory carrying costs.
An increase in the Receivables Turnover ratio indicates that
the company is collecting its accounts receivable more
Recievables Turnover 9.287 9.240 quickly, which can be a sign of improved credit and
collection policies. This can also lead to better cash flow
management and reduced bad debt expenses.
An increase in the Fixed Assets Turnover ratio indicates
that the company is generating more sales per dollar
Fixed Assets Turnover 2.556 2.550 invested in its fixed assets. This can be a sign of operational
efficiency, as the company is utilizing its fixed assets more
effectively to generate revenue.

Debt Management

Total Debt/ Total Assets 0.594 0.597

Total Debt/ Total Equity 1.464 1.479 Good sign debt is decreasing.
LT Debt/Shareholder's Equity 0.391 0.409
A higher Interest Coverage ratio indicates that the
company has more EBIT available to cover its interest
Interest Coverage ratio 9.337 6.318
expenses, which is generally considered a positive sign of
financial health.

Du Pont Analysis

Net Profit Margin 4.58% 6.83% Bad sign

An increase in the asset turnover ratio may indicate that
the company is becoming more efficient in using its assets
Asset Turnover 1.504 1.450 to generate revenue.
Return on Equity 16.95% 24.55% Bad sign
Return on Investment 6.88% 9.90% Bad sign
Retail Companies Revenue($ billions) Basic EPS Debt($ billions) Debt Rating(S&P) Beta Fiscal Year Ended Market Capitalization as of Oct
31, 2006($ billions)
Bed Bath & Beyond Inc. $5.80 $1.95 $0.00 BBB 1.05 Feb-06 $11.40
Best Buy Co., Inc $30.80 $2.33 $0.60 BBB 1.25 Feb-06 $26.20
Costco Wholesale Corp. $52.90 $2.24 $0.80 A 0.85 Aug-05 $24.10
Dick’s Sporting Goods, Inc. $2.60 $1.47 $0.20 Not Rated 1.15 Jan-06 $1.30
JCPenney Company, Inc. $18.80 $4.30 $3.50 BB+ 1.05 Jan-06 $16.60
Kohl’s Corporation $13.40 $2.45 $1.20 BBB 0.9 Jan-06 $23.10
Sears Holdings Corporation $49.10 $5.63 $4.00 BB+ NMF Jan-06 $26.90
Wal-Mart Stores, Inc $315.70 $2.68 $38.80 AA 0.8 Jan-06 $199.90
Target Corporation $52.60 $2.73 $9.90 A+ 1.05 Jan-06 $50.10

Revenue in $ billions Basic EPS

Target Corporation Target Corporation
Wal-Mart Stores, Inc Wal-Mart Stores, Inc
Sears Holdings Corporation Sears Holdings Corporation
Kohl’s Corporation Kohl’s Corporation
JCPenney Company, Inc. JCPenney Company, Inc.
Dick’s Sporting Goods, Inc. Dick’s Sporting Goods, Inc.
Costco Wholesale Corp. Costco Wholesale Corp.
Best Buy Co., Inc Best Buy Co., Inc
Bed Bath & Beyond Inc. Bed Bath & Beyond Inc.

$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

Walmart Stores Inc. has the highest revenue comparatively, whereas Target Corporation, Sears Sears Holdings Corp. has the highest Basic EPS. JCPenney is second in terms of Basic EPS. Target
Holdings and Costco Wholesale Corporations have similar revenue Corp. and Walmart Stores Inc. have similar essential EPS, with Target Corp. being slightly better.

Debt($ billions) Market Capitalization as of Oct 31st '06($ billions

Target Corporation
Wal-Mart Stores, Inc Target Corporation

Sears Holdings Corporation Wal-Mart Stores, Inc

Sears Holdings Corporation
Kohl’s Corporation
Kohl’s Corporation
JCPenney Company, Inc.
JCPenney Company, Inc.
Dick’s Sporting Goods, Inc.
Dick’s Sporting Goods, Inc.
Costco Wholesale Corp. Costco Wholesale Corp.
Best Buy Co., Inc Best Buy Co., Inc
Bed Bath & Beyond Inc. Bed Bath & Beyond Inc.

$0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00

Wallmart Stores Inc. has the highest debt in comparison to its competitors.Target Corporation Walmart Stores Inc is leading in terms of Market capitalization, followed by Target corporation.
is the second highest in terms of debt. Dick's sporting goods has the lowest amount of debt Sears Holdings, Kohl's Corp., Costco Wholesale group and Best Buy co. Inc have similar market
capitalization.
 Project Evaluation

Location Gopher Place Whalen Court The Barn Goldie's Square Stadium Remodel

General Information
Opening Time Oct-07 Oct-08 Mar-07 Oct-07 Mar-07
Type of Store P04 P04 P04 SuperTarget SuperTarget
Pre Existing Stores 5 45 0 12 1
Investment ($000) 23000.00 119300.00 13000.00 23900.00 17000.00
NPV ($000) 16800.00 25900.00 20500.00 300.00 15700.00
IRR 12.30% 9.80% 16.40% 8.10% 10.80%
PI 1.73 1.22 2.58 1.01 1.92
IRR Store 12.70% 9.90% 17.50% 8.10% 12.50%
IRR Credit 8.10% 8.20% 8.20% 8.10% 4.60%
Population 70000.00 632000.00 151000.00 222000.00 113000.00
Population Increase ( 2000 - 2005) 27% 3% 3% 16% 16%
Median Income ($) 56400.00 48500.00 38200.00 56000.00 65931.00
Ideal Customer in percentage 12% 45% 17% 24% 42%
Number of ideal customer 8400.00 284400.00 25670.00 53280.00 47460.00
Own/Lease Own Lease Own Own Own
Market Share in 2008 24.00% NA 13.00% 17.00% NA

Supported stores
Most Favourable Rare opportunity Nearest target
since 1972 and a
population to enter urban stores 80 and Good Brand
remodel so
growth with center of a major 90 miles far Awareness
investment lower
favourable metropolitian area. away.
than new.
Store Pros median income.
Small rural
Walmart
Limited Time area, initial Remodeled twice
planning to open
opportunity and efforts failed already, sales
2 new stores and Highly congested
Store Cons store has to be due to declining and could
19% of forecast with competitors
leased unlike disagreement lead to brand image
sales from
majority. with also.
existing stores.
developer.

Hurdle Adjustment for prototype development

Prototype NPV ($) 3038 3989 7605 9516 NA

How much sales change to achieve prototype NPV -5.30% 1.90% -18.10% 45.10% NA
How much can Construction cost change to achieve
prototype NPV ($) 3102 -4289 8908 -22167 NA
High construction Prototype Very
Good Sign Good Sign No data
Remark cost variability Costly

Sensitivity Analysis

Worst Case 10% sale decline

NPV 12078.00 9289.00 16434.00 -3773.00 7846.00
IRR 11.00% 8.80% 14.50% 7.00% 9.00%
PI 1.525 1.078 2.264 0.842 1.462

Base Case
NPV 16800.00 25900.00 20500.00 300.00 15700.00
IRR 12.30% 9.80% 16.40% 8.10% 10.80%
PI 1.73 1.22 2.58 1.01 1.92

Best Case 10% sale increase

NPV 21421.00 42547.00 24596.00 4308.00 21916.00
IRR 13.50% 10.80% 18.30% 9.20% 12.30%
PI 1.931 1.357 2.892 1.180 2.289

IRR in worst case

below disocunt PI less than 1 in
rate and worst case, very low
Final Remark Selected Selected Selected
prototype NPV and low profit
senstivity to high margins.
construction cost.