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Wouldn't a failed hard drive be picked up by the Target Mode disk utilities check I did?

I have an iMac (Model details: iMac, Late 2011 model, 27 inch, 4 Gb RAM, Intel 3.4GHz i7) which has recently started shutting down midway through its boot up process (when the Apple Logo is displayed). It continues in that cycle until I turn it off. When run in Verbose mode, I get the following...