Business Administration & Management:
Cost of Funding questions
May 15, 2015
Find the Debt/Equity Ratio of Ford (F), Macy’s (M) and Starbucks (SBUX) using
Money.cnn.com or another popular financial website.
Use FINRA’s TRACE website: http://finramarkets.morningstar.com/BondCenter/Default.jsp .
Type in the company symbols (one at a time); select the maturity range if
desired, and be sure to select Bond Type “Corporate Bonds” (see example below):
How much does the market demand each pay in interest rates for (information
may not be available on all…if needed, approximate the maturity, such as 8 years
instead of 10 years, etc.…):
30 days?
1 year?
5 years?
10 years?
20-30 years?
How much does the market demand the US Government pay for each maturity?
(Use TRACE website but this time select Bond Type “Treasury & Agency”).
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Closure questions:
Why should firms manage both their Income Statement (profits) and Balance
Sheet?