Go to www.mhhe.com/edumarketinsight. At the Market Insight Company page enter the stock ticker symbol AA for Alcoa Inc. and do the following.
Review the recent Industry Outlook (in the S&P Stock Reports section) for the aluminum materials industry.
Review the variety of Alcoa bonds outstanding by reviewing the latest EDGAR 10K report for Alcoa. Use the Edit, Find on This Page menu and search for the term "bond" to find the list about halfway through the document. How does the company's debt structure in the current year compare with its debt structure in the previous year? Based on the types and maturities of bonds outstanding, how much interest rate risk do the bondholders face?
Go to www.mhhe.com/edumarketinsight and enter the stock symbol BNI to locate information for Burlington Northern Santa Fe. Locate the company's most recent annual Balance Sheet in the Excel Analytics section. Examine the company's assets and liabilities. Does it seem that there is a good match between the duration of the assets and the duration of the liabilities? Repeat the exercise with several other companies of your choice. Try to pick companies in different industries. Do you notice any patterns?
