Continuing Case 60. Corporate Bond Evaluation With the triplets now in high school, Jamie Lee and Ross have made good decisions so far concerning their financial and investment strategies. They budgeted throughout the years and are right on track to reaching their long-term investment goals of paying the triplets' college tuition and accumulating enough to purchase a beach house to enjoy when Jamie Lee and Ross retire. The pair are still researching where to best invest the $50,000 that Ross had recently inherited from his uncle's estate. Ross and Jamie Lee would like to invest in several varieties of stocks, bonds, or other investment instruments to supplement their retirement income goals. Jamie Lee and Ross have been researching stock investment opportunities that my offer lucrative returns, but they know there is plenty of risk involved. They are aware that they must develop a firm plan to assess the risk of the various investment types so they may have the proper balance between high, moderate, and low risk investment options. They decided that at this stage of their lives, it may be wise to speak to an investment counselor. They contact Mr. Jay Hall, who has been highly recommended by a trusted colleague and friend of Ross throughout the years. Mr. Hall assesses their risk for investment and recommends two different corporate bonds. One of those companies he suggested is The Coca-Cola Company. Use Addendum D- Coca-Cola Company to complete the corporate bond evaluation below. Category 1: Information about the Corporation 1. What is the corporation's name? Coca-Cola Corporation 2 What are the corporation's address and telephone number? The Coca-Cola Company P.O. Box 1734 Atlanta, GA, USA 1-800-GET-COKE 3. What type of products or services does this firm provide? Sparkling and still beverages 4. Briefly describe the prospects for this company include significant factors like product development, plans for expansion plans for mergers, etc.) Coca-Cola is the world's largest non-alcoholic beverage company. Category 2: Dividend Income 5. What type of bond is this? Corporate bond 6. What is the face value for this bond? $1,000.00 7. What is the interest rate for this bond? 8. What is the dollar amount of annual interest for this bond? 9. When are interest payments made to bondholders? April 27 and Oct. 27 10. Is the corporation currently paying interest as scheduled? Yes No 11. What is the maturity date for this bond? 10/27/2025 12. What is Standard & Poor's rating for this bond? Neutral (credit watch positive) 13. What is Morningstar's rating for this bond? 3 stars 14. What was the original issue date? 4/27/2015 15. Is the bond callable? Yes No 16. Is the bond secured with collateral? Yes Category 3: Financial Performance 17. What are the firm's basic earnings per share for the last year? 18. Have the firm's earnings increased over the past five years? Yes No 19. Have sales increased over the last five years? Yes No A Word of Caution When you use a checklist, there is always a danger of overlooking important relevant information, this checklist is not all-inclusive, but it does provide some questions you should answer before making a decision to invest in stock. Quite simply, it is a place to start. If you need other information, you are responsible for obtaining it and determining how it affects your personal investment. Continuing Case 60. Corporate Bond Evaluation With the triplets now in high school, Jamie Lee and Ross have made good decisions so far concerning their financial and investment strategies. They budgeted throughout the years and are right on track to reaching their long-term investment goals of paying the triplets' college tuition and accumulating enough to purchase a beach house to enjoy when Jamie Lee and Ross retire. The pair are still researching where to best invest the $50,000 that Ross had recently inherited from his uncle's estate. Ross and Jamie Lee would like to invest in several varieties of stocks, bonds, or other investment instruments to supplement their retirement income goals. Jamie Lee and Ross have been researching stock investment opportunities that my offer lucrative returns, but they know there is plenty of risk involved. They are aware that they must develop a firm plan to assess the risk of the various investment types so they may have the proper balance between high, moderate, and low risk investment options. They decided that at this stage of their lives, it may be wise to speak to an investment counselor. They contact Mr. Jay Hall, who has been highly recommended by a trusted colleague and friend of Ross throughout the years. Mr. Hall assesses their risk for investment and recommends two different corporate bonds. One of those companies he suggested is The Coca-Cola Company. Use Addendum D- Coca-Cola Company to complete the corporate bond evaluation below. Category 1: Information about the Corporation 1. What is the corporation's name? Coca-Cola Corporation 2 What are the corporation's address and telephone number? The Coca-Cola Company P.O. Box 1734 Atlanta, GA, USA 1-800-GET-COKE 3. What type of products or services does this firm provide? Sparkling and still beverages 4. Briefly describe the prospects for this company include significant factors like product development, plans for expansion plans for mergers, etc.) Coca-Cola is the world's largest non-alcoholic beverage company. Category 2: Dividend Income 5. What type of bond is this? Corporate bond 6. What is the face value for this bond? $1,000.00 7. What is the interest rate for this bond? 8. What is the dollar amount of annual interest for this bond? 9. When are interest payments made to bondholders? April 27 and Oct. 27 10. Is the corporation currently paying interest as scheduled? Yes No 11. What is the maturity date for this bond? 10/27/2025 12. What is Standard & Poor's rating for this bond? Neutral (credit watch positive) 13. What is Morningstar's rating for this bond? 3 stars 14. What was the original issue date? 4/27/2015 15. Is the bond callable? Yes No 16. Is the bond secured with collateral? Yes Category 3: Financial Performance 17. What are the firm's basic earnings per share for the last year? 18. Have the firm's earnings increased over the past five years? Yes No 19. Have sales increased over the last five years? Yes No A Word of Caution When you use a checklist, there is always a danger of overlooking important relevant information, this checklist is not all-inclusive, but it does provide some questions you should answer before making a decision to invest in stock. Quite simply, it is a place to start. If you need other information, you are responsible for obtaining it and determining how it affects your personal investment