Using the information from the websites the student will develop evaluation of bond and stock performance for THE COMPANY (SELECTED BY INSTRUCTOR). (The evaluation portion will total 85% of the assignment grade)
-1—Background and Industry (one short paragraph).
-2- The financial leverage ratios (10% of the project grade)
- a) Find the financial leverage ratios for THE COMPANY assigned for you of the project for the last 3-5 years in the Internet. Present these ratios as the table(s) in your project.
You can find these ratios in the Internet or calculate them. If you use published ratios you must indicate that and cite their source.
- Debt-to-assets ratio (Debt ratio)
- Debt-to Equity ratio
- Interest Coverage ratio (the Times Interest Earned)
- b) Write (about) 1 page of the analysis of the ratio results. In your analysis you should answer the following questions. Please explain your answer to each question.
How is THE COMPANY financing its assets? Discuss how much risk is associated with the bonds issued by the company? How can this risk be measured? Please explain.