Part 3 of 7

Global Wings Airlines (GWA) is a publicly traded, Atlanta based airline. GWA is expanding its offering of flights to Western Europe. To facilitate this expansion GWA needs additional capital. Due to the large amount of capital that needs to be raised the company does not have sufficient internal financial capital available securities Assume you are a team of analysts who follow this company and industry. You have the task of analyzing the new issue of common equity for the purpose of (Do not use Customer Satisfaction ratings.) Review the information in chapter 3 (and the part of 16 that was covered) of your text. Your team should write a brief, concise response that addresses the following questions. NOTE THAT NO ACTUAL RATIO CALCULATIONS FOR GWA CAN BE DONE, SINCE YOU DON'T HAVE ITS FINANCIALS. You are to layout a model for the analysis. 3. Equity analysts have different objectives and goals than debt analysts. Think about and discuss in your group what the difference of focus would be between equity and debt analysis. Assume in this scenario that the company would have been able to finance its expansion by negotiating a loan through an Atlanta based bank and you were the financial analyst/credit analysts at the bank. Describe any changes you would make in your ratio analysis model under 1 . above to account for different needs for different types of investors, if you were a (debt or) credit analyst for this company instead of an equity analyst. Global Wings Airlines (GWA) is a publicly traded, Atlanta based airline. GWA is expanding its offering of flights to Western Europe. To facilitate this expansion GWA needs additional capital. Due to the large amount of capital that needs to be raised the company does not have sufficient internal financial capital available securities Assume you are a team of analysts who follow this company and industry. You have the task of analyzing the new issue of common equity for the purpose of (Do not use Customer Satisfaction ratings.) Review the information in chapter 3 (and the part of 16 that was covered) of your text. Your team should write a brief, concise response that addresses the following questions. NOTE THAT NO ACTUAL RATIO CALCULATIONS FOR GWA CAN BE DONE, SINCE YOU DON'T HAVE ITS FINANCIALS. You are to layout a model for the analysis. 3. Equity analysts have different objectives and goals than debt analysts. Think about and discuss in your group what the difference of focus would be between equity and debt analysis. Assume in this scenario that the company would have been able to finance its expansion by negotiating a loan through an Atlanta based bank and you were the financial analyst/credit analysts at the bank. Describe any changes you would make in your ratio analysis model under 1 . above to account for different needs for different types of investors, if you were a (debt or) credit analyst for this company instead of an equity analyst