Question.3185 - Find 2 companies with debt and that pay dividends. You can use the following to find a company http://www.google.com/finance/stockscreener. To find the company’s information go to. http:// www.sec.gov/edgar.shtml. Add the criteria of long term debt. Look at the long term debt to assets to secure the company has debt. Determine the coupon price, the length of maturity, and yield to maturity. Calculate today’s price of the bond. List the pertinent info on the bond you chose then calculate todays price of the bond Which bond is receiving a higher price? From a time value of money concept what does each rate say about the viewpoint on the time value of money? Which company has a better credit rating. Explain. Based on credit rating, which company do u believe the bank feels more secure about paying back a loan? Why does the bank charge more interest for one company than the other? What does the credit rating say to an investor? I. Introduction- Two companies chosen that encounter debt II. Company 1 A. debt accumulated B. dividends C. long term payout III. Company 2 A. debt accumulated/ coupon price B. dividends C. long term payout and todays price of the bond IV. Pertinent Info pertaining to vanilla bonds 1. Price calculated from each company 2. Which bond receives higher price 3. Credit ratings A. AAA rating B. BBB rating C. Junk ratingV. Investor alternatives to incorporate bonds 1. Annuities/Perpetuities 2. Types of bonds to chooseConclusion
Answer Below:
The xxxxxxx chosen xxxxx has xxxx dividend xxx debt xxx M xx and x O xxxxx Corporation xxxxx details xx the xxx companies xxx as xxxxxxx - x Co x is x company xxxxx has x vast xxxxxxxxxxxxxxx in xxxxxxxxxx and xxxxx makes xxx presence xxxx almost xxx over xxx world xxx company xxxx business xx various xxxxxxx like xxxxxx care xxxxxx and xxxxxxxx display xxx graphics xxxxxxxxxx and xxxxxxxxxxxxxx etc xxxx company xx a xxxxxx in xxx business xx manufacturing xxxxxxx products xxx the xxxxxx market xxxxxx the xxxxx which xx serves xxxx of xxx products xxxxxxxxxxxx by x require xxxxxx knowledge xx the xxxxxxxxxxx of xxx product xxxxxxxxxxxxx of xxx product xxx the xxx it xx marketed xx various xxxxxxxxxx and xxxxxxx Their xxxxxxxx also xxxx to xxxx severe xxxxxxxxxxx with xxx other xxxxxxxx that xxx produced xxx sold xx the xxxxxxxxx which xxx way xxxxx and xxxxxxxx technologically xx Smith xxxxxxxxxxx AO xxxxx Corporation xx a xxxxxxx which xxxxx the xxxxx in xxx manufacture xx water xxxxxxx and xxxxxxx globally xxx markets xxxxx it xxxxxx include xxxx residential xxx commercial xxx its xxxxxxxxx place xx business xx United xxxxxx This xxxxxxx is xxxxxxx very xxxxxxx and xx showing x cery xxxxxx presence xx the xxxxxxxxxxxxx market xxx company xx a xxxxxx in xxxxxxxxxxxxx of xxxxxxxxxxx water xxxxxx market xxx offers x very xxxx quality xx electric xxxxxxx gas xxxxxxx as xxxx as xxxxxxx The xxxxxxx has xxxxxx its xxxxxx offices xxxxxxxxx starting xxxx Europe xxx extends xxxx Asia xxx it xxxx covers xxx whole xx America xxxx the xxxxx mentioned xxxxxxx is xxxxxx and xxx actively xxxxxx on x stock xxxxxxxx Their xxxxx details xxx as xxxxxxx M xx A x Smith xxxxxxxxxxx Market xxxxx Range x - xxxx - x Vol xxx M x Mkt xxx B x P x Div xxxxx EPS xxxxxx M x Beta xxxx Own xx millions xxxxxxxxxxxxxxxxxxx Fixed xx FloatingEffective xxxxxxxx Rate xxxxx Maturity xxxx Eurobond xxxxxxx Euros xxxx Fixed xxxxxxxxxxx note xxxxxxx USD xxxxx - xxxxxxxxxxx note xxxxxxx USD xxxxx Medium-term xxxxxxx Floating x -year xxxx million xxx Fixed xxxxxxxxxxx note xxxxxxx USD xxxxx Eurobond xxxxxxx Euros xxxx Floating xxxxx debenture xxxxxxx USD xxxxx Convertible xxxxxxxx Fixed x Japan xxxxxxxxxxxx Floating x Canada xxxxxxxxxxxx Floating x Floating xxxx note xxxxxxx USD xxxxxxxx Floating xxxx note xxxxxxx USD xxxxxxxx Other xxxxxxxxxxxxxxxxx - xxxxx long-term xxxx Less xxxxxxx portion xx long-term xxxx Long-term xxxx excluding xxxxxxx portion xxx let xx analyze xxx performance xx the xxxxxxx with xxxxxxx to xxxxxxxx and xxxxx The xxxxxxx of xxxx structure xx M xx are xx follows xxxxxxx Rating xx M xx The xxxxxxx agencies xxxxxxxx in xxx work xx credit xxxxxx have xxxxxxxx the xxxxxxx taken xx the xxxxxxx and xxx ability xx the xxxxxxx to xxx back xxx credits xxxxx by xx On xxx basis xx this xxxxxxxxxx the xxxxxxxx assign xxxxxxx to xxx company xxxx company xxx c xxxxxx rating xx AA- xxxxx now xxxx a xxxxxx outlook xxxx Standard xxx amp xxxx rsquo x and xx Aa xxxxxx rating xxxx a xxxxxx outlook xxxx Moody xxxxx s xxxxxxxxx Service xxx evaluation xx the xxxxxx rating xxxxxxxx is xxxxx on x number xx factors xxxxx include xxxxxxxxxx weakness xxxxxx opportunities xxxxxxxxx strength xxxxxxxxx risk xxxxxxxx risk xx well xx transparency xxxx rating xxxxxxxx and xxxxxx filing xx financial xxxxxxx with xxx statutory xxxxxxxxxxx Because xx the xxxx rating xxxxxxxx to xxx Company xxx Company xxx able xx lower xxx borrowing xxxx and xx facilitated xxxxxx to x large xxxxxx of xxxxxxx It xx to xx noted xxxx failure xx maintain xxx current xxxxxxx level xxxxx adversely xxxxxx the xxxxxxx rsquo x cost xx funds xxx could xxxxxxxxx affect xxxxxxxxx and xxxxxx to xxxxxxx markets xxxxxxxx Trend xxxx million xxxx and xxxxx Commitments xxxx credit xxxxx average xxxxxxxx interest xxxx of xxx and xxx Revolving xxxxxx agreement xxxxxxxxxx average xxxxxxxx interest xxxx of xxx and xxx Commercial xxxxx average xxxxxxxx interest xxxx of xxx and xxx Term xxxxx with xxxxxxxxx companies xxxxxxxx through xxxxxxx year-end xxxxxxxx rate xx for xxx for xxxxxxxx term xxxxx with xxxxxxxxx companies xxxxxxxx through xxxxxxx year-end xxxxxxxx rate xx for xxx Less xxxxxxxxx debt xxx within xxx year xxxxxxxxx debt xxxxx end xxx Payo xx Ratio xxx above xxxxx shows xxx increasing xxxxx of xxxxxxxx amount xxxx by xxx company xx its xxxxxxxxxxxx however xxx payout xxxxx was xxxxxxxxx in xxx range xx to xx the xxxxxx The xxxxxxx of xxxx structure xx A x Smith xxxxxxxxxxx are xx follows xxxxxxx Rating xxx A x Smith xxxxxxxxxxx While xxxxxxx bonds xxx company xxxx for xxx credit xxxxxx of xxx bonds xxxxx and xxxxxxx has xx the xxxx received xxxx credit xxxxxx from xxx reputed xxxxxx rating xxxxxxxx The xxxxxx of xxx company xxx based xx the xxxxxx of xxxxxxx like xxx timely xxxxxxx of xxxxxxxx confirm xxxxxx in xxxx stable xxxxxxxxx ratios xxxxxx prospects xx the xxxxxxx and xxx trend xx the xxxxx firms xx the xxxx industry xxxxxxxx Trend xx A x Smith xxxxxxxxxxx Year xxxxxxx d xxx Payout xxxxx The xxxxxxx has xxxx dividends xxx consecutive xxxxx with xxxxxxxx increasing xxxx of xxx last xxxxx The xxxxx dividends xxxx were xxx share xx compared xxxx per xxxxx in xx we xxxxxxxx analyze xxx dividend xxxxx of xxx Company xx can xxxxx that xxx Company xxx paid xxxxxxxx regularly xx its xxxxxxxxxxxx and xxxx increasing xxxxx This xxx also xx seen xxxx the xxxxx below xxxxxxxxxx On xxxxxxxxx the xxxxxxxxxx of xxx two xxxxxxxxx we xxx say xxxx M xxx a xxxxxx credit xxxxxx as xxxxxxxx to xx Smith xxxxxxxxxxx and xxxx be xxxx to xxxxxxx its xxxx obligation xx a xxxxxx and xxxxxx manner x bond xxxx a xxxxxx credit xxxxxx trades xx a xxxxxx price xxx price xx the xxxx can xx calculated xx discounting xxx future xxxxxx and xxxxxxxxx repayment xx the xxxx Based xx different xxxx return xxxxxx and xxxxxx rating xxxxxxxx to xxxxx it xxx be xxxxxxx into xxxxxxx types xxxx US xxxxxxxxxx bonds xxxxxxxxx bonds xxxxxxxxx bonds xxxx coupon xxxxx Similarly xxxxx on xxx forms xx payment xx Dividend xxxxxxxx can xx categorize xx Cash xxxxxxxxx Stock xxxxxxxxx Property xxxxxxxxx Interim xxxxxxxxx etcMore Articles From Finance
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