17.1 Capital Structure Go to yahoo.marketguide.com
and enter the ticker symbol AMGM for Amgen, a biotechnology company. Follow the
"Ratio Comparison" link and find long-term debt-to-equity and total
debt-to-equity ratios. How does Amgen compare to the industry, sector, and S&P
500 in these areas? Now answer the same question for Edison International (EIX),
the parent company of Southern California Edison, a utility company. How do the
capital structures of Amgen and Edison International compare? Can you think of
possible explanations for the difference between these two companies? 17.2 Capital
Structure Go to www.amex.comand
follow the "Screening" link. Using the debt-to-equity screener, how
many companies have debt-to-equity ratios greater than 2? Greater than 5? Greater
than 10? What company has the highest debt-to-equity ratio? What is the ratio?
Now find how many companies have a negative debt-to-equity ratio. What is the
lowest debt-to-equity ratio? What does it mean if a company has a negative debt-to-equity
ratio? 17.3 Capital Structure Go to www.amex.comand follow the "Screening" link. Using the total assets-to-equity
ratio, how many companies have a total asset-to-equity ratio greater than 5? Greater
than 10? Greater than 20? What does a high total asset-to-equity ratio imply for
the debt-to-equity ratio? How many companies have a total asset-to-equity ratio
that is negative? What company has the lowest total asset-to-equity ratio? What
does a negative total asset-to-equity ratio imply for the debt-to-equity ratio? 17.4 Bankruptcies
Go to www.abiworld.org and follow
the "Bankruptcy Headlines" link. How many companies filed for bankruptcy
on this day? |