Kansas City Southern (KSU)
Background and Industry (one short paragraph).
-2- The financial leverage ratios (10% of the project grade)
a) Find the financial leverage ratios for THE COMPANY assigned for you of the project for the last 3-5 years in the Internet. Present these ratios as the table(s) in your project.
- Debt-to-assets ratio (Debt ratio)
- Debt-to Equity ratio
- Interest Coverage ratio (the Times Interest Earned)
b) Write (about) 1 page of the analysis of the ratio results. In your analysis you should answer the following questions. Please explain your answer to each question.
How is THE COMPANY financing its assets? Discuss how much risk is associated with the bonds issued by the company? How can this risk be measured? Please explain.
-3- Collect and evaluate the data about bond performance of the assigned company. (15% of the project grade)
- Copy the quotations of two bonds issued by THE COMPANY (SELECTED BY INSTRUCTOR) that contain the Price. Present these quotations in your project.
- Assume that par value of the bond is $1,000. What were the last prices of the bonds in $$$ (listed in the Price column)? Show your work in your project.
- Assume that par value of the bond is $1,000. Calculate the annual coupon interest payments. Show your work in your project.
