As a team, select an industry to analyze. A list of companies classified by industry can be obtained by accessing www.fpinfomart.ca and then choosing "Companies by Industry." You can also find a list of industries and companies within each industry via http://ca.finance.yaloo.com/investing (click on "Annual Reports" under "Tools"). Using a Web browser, each group member should acquire the annual report for one publicly traded company in the industry, with each member selecting a different company.

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On an individual basis, each team member should then write a short report answering the following questions about the selected company. Discuss any patterns across the companies that you, as a team, observe. Then, as a group, write a short report comparing and contrasting your companies.

1. Has your company issued any long-term bonds or notes? If so, read the related note and list any unusual features (e.g., callable, convertible, secured by specific collateral).

2. If your company issued any bonds, were they issued at either a premium or a discount? If so, does the company use the straight-line or effective interest amortization method?

3. Ratio analysis:

a. What does the times interest earned ratio measure, in general?

b. Compute the ratio for the last three years.

c. What do your results suggest about the company?

d. If available, find the industry ratio for the most recent year, compare it with your results, and discuss why you believe your company differs from or is similar to the industry ratio.
4. Ratio analysis:

a. What does the financial leverage ratio measure, in general?

b. Compute the ratio for the last three years.

c. What do your results suggest about the company?

d. If available, find the industry ratio for the most recent year, compare it with your results, and discuss why you believe your company differs or is similar to the industry ratio.
5. During the recent year, how much cash did the company receive on issuing debt? How much did it pay on debt principal? What does management suggest were the reasons for issuing and/or repaying debt during the year?