How would a potential investor determine the value and risk of the bond?
Two Part Assignment, please read all required details for the assignment along with propertly answering the questionsPart One Ratio AnalysisThis is your opportunity to play detective and do some financial statement analysis. Please select any publicly traded company.For the company you select, find the annual report and the financial ratio information for the following ratios:debt-to-equity,current ratio,return on equity,quick ratio,working capital ratio,price earnings ratio, andearnings per share.Once you have reviewed the information, with a brief introduction to your chosen company. Next, explain how the company is doing with respect to the ratios. In one to three sentences, briefly summarize what each of the ratios are telling you about the company. Conclude with how you predict it will do in the future.Your should be at least one page in lengthPart Two Case Study:Choose a publicly traded company that issues bonds. You can locate this information by reviewing your chosen companys annual report online. A good place to start is the Annual Reports website.In your case study, discuss the following aspects of the company.1. Provide a brief introduction of the company, including its name, headquarters, products/services offered, and approximate net worth.2. What are the key features of one of the bonds issued by your chosen company? Discuss how the bonds terms and collateral can affect the bonds interest rate.3. How would a potential investor determine the value and risk of the bond?4. Explain the concept of the time value of money (TVM) as it applies to the companys bond offerings.Your case study should be at least two pages in length.
