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 uncles 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
Coca-Cola Co KO *** PDF Report Rounding TTM 44,294 43,248 Quote Chart Stock Analysis Performance Key Ratios Financials Valuation Insiders Shareholders Transcripts Filings Bonds Options Income Statement Balance Sheet Cash Flow Statement Type Data Type Period Show Report Dates Data Scroll View Export Annual As of Reported 5 Years Ascending % 1.0 Focal year ends in December USD in Milion except per share data 2011-12 2012-12 2013-12 2014-12 2015-12 Revenue 46,542 48,017 46,854 45,998 Cost of revenue 18,216 19,053 18,421 17,889 17,482 Gross profit 28,326 28,964 28,433 28,109 26,812 Operating expenses Sales, General and adm... 17,440 17,738 17,310 17,218 10,237 Other operating expens... 732 447 895 1,183 7,847 Total operating expens... 18,172 18,185 18, 205 18,401 18,084 Operating income 10,154 10,779 9,708 8,728 17,171 26,077 9,804 7,376 17,180 8,897 10,228 417 397 483 856 584 Interest Expense Other income (expense) Income before taxes 1,702 11,439 1,427 11,809 463 1,712 11,477 100 9,325 1,733 9,605 1,143 9,456 2,805 1,814 Provision for income t... Net income from contin... 2,723 9,086 2,851 8,626 2,201 7,124 2,239 7,366 8,634 7,642 (62) (42) Other Net income (67) 9,019 (26) 7,098 (15) 7,351 (25) 7,617 8,572 8,584 Net income available t... 8,572 9,019 8,584 7,098 7,351 7,617 1.88 2.00 1.94 1.62 1.69 1.76 Earnings per share Basic Diluted Weighted average share... Basic 1.84 1.97 1.90 1.60 1.67 1.74 4,568 4,504 4,387 4,352 4,434 4,509 4,335 4,387 Diluted 4,646 4,584 4,450 4,405 EBITDA 13,810 14,188 13,917 11,784 12,431 11,952 Coca-Cola Co KO *** PDF Report Quote Chart Stock Analysis Performance Key Ratios Financials Valuation Insiders Shareholders Transcripts Filings Bonds Options Last Price / Yield Price / Yield Change 52-wk High/Low Price Current Yield Yield to Call Yield to Worst Modified Duration $105.60/2.20 -0.26%/+1.51% $106.93/$97.12 2.72 8.0 Trading Chart Price Evaluated Price Yield Evaluated Yield US Treasury Index Reset Issue General Information Zoom: 1M 3M YTD 1Y3Y SY 101 Maximum - Coca Cola 2.875% Maturity: 2025 Issuer Detail Type Maturity Date Country Currency Coca-Cola Co Corporate Bond 10/27/2025 United States US Dollar 2.20 Callable No 2.15 Puttable No Convertible No 2.10 Issue Features 2.05 Volume Tax Status Rule 144a Taxable Not subject to Rule 144A Jul 18 Jul 28 Aug 05 bun 1 Current Yield Spread Issue Details Benchmark Treasury Yield Spread Treasury Yield Latest Date US Treasury 7-10 Yr Yld USD 0.69% 1.51 % 2016-08-17 Amount Outstanding 1.8 Bil Par Value 1,000 Issue Size 1.8 Bil Coupon Coupon Type Fixed Coupon Frequency Semi-Annually 2.875 % Day Count Basis 30/360 First Payment Date 2016-04-27 Accrual Start Date 2015-10-27 Collateral Type Payment Currency US Dollar 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 Briefly describe the prospects for this company include significant factors like 4. 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? 6. What is the face value for this bond? 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? 10. Is the corporation currently paying interest as scheduled? Yes No 11. What is the maturity date for this bond? 12. What is Standard & Poor's rating for this bond? Neutral (credit watch positive) 13. What is Morningstar's rating for this bond? 14. What was the original issue date? 15. Is the bond callable? Yes No 16. Is the bond secured with collateral? Yes No 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 Coca-Cola Co KO *** PDF Report Rounding TTM 44,294 43,248 Quote Chart Stock Analysis Performance Key Ratios Financials Valuation Insiders Shareholders Transcripts Filings Bonds Options Income Statement Balance Sheet Cash Flow Statement Type Data Type Period Show Report Dates Data Scroll View Export Annual As of Reported 5 Years Ascending % 1.0 Focal year ends in December USD in Milion except per share data 2011-12 2012-12 2013-12 2014-12 2015-12 Revenue 46,542 48,017 46,854 45,998 Cost of revenue 18,216 19,053 18,421 17,889 17,482 Gross profit 28,326 28,964 28,433 28,109 26,812 Operating expenses Sales, General and adm... 17,440 17,738 17,310 17,218 10,237 Other operating expens... 732 447 895 1,183 7,847 Total operating expens... 18,172 18,185 18, 205 18,401 18,084 Operating income 10,154 10,779 9,708 8,728 17,171 26,077 9,804 7,376 17,180 8,897 10,228 417 397 483 856 584 Interest Expense Other income (expense) Income before taxes 1,702 11,439 1,427 11,809 463 1,712 11,477 100 9,325 1,733 9,605 1,143 9,456 2,805 1,814 Provision for income t... Net income from contin... 2,723 9,086 2,851 8,626 2,201 7,124 2,239 7,366 8,634 7,642 (62) (42) Other Net income (67) 9,019 (26) 7,098 (15) 7,351 (25) 7,617 8,572 8,584 Net income available t... 8,572 9,019 8,584 7,098 7,351 7,617 1.88 2.00 1.94 1.62 1.69 1.76 Earnings per share Basic Diluted Weighted average share... Basic 1.84 1.97 1.90 1.60 1.67 1.74 4,568 4,504 4,387 4,352 4,434 4,509 4,335 4,387 Diluted 4,646 4,584 4,450 4,405 EBITDA 13,810 14,188 13,917 11,784 12,431 11,952 Coca-Cola Co KO *** PDF Report Quote Chart Stock Analysis Performance Key Ratios Financials Valuation Insiders Shareholders Transcripts Filings Bonds Options Last Price / Yield Price / Yield Change 52-wk High/Low Price Current Yield Yield to Call Yield to Worst Modified Duration $105.60/2.20 -0.26%/+1.51% $106.93/$97.12 2.72 8.0 Trading Chart Price Evaluated Price Yield Evaluated Yield US Treasury Index Reset Issue General Information Zoom: 1M 3M YTD 1Y3Y SY 101 Maximum - Coca Cola 2.875% Maturity: 2025 Issuer Detail Type Maturity Date Country Currency Coca-Cola Co Corporate Bond 10/27/2025 United States US Dollar 2.20 Callable No 2.15 Puttable No Convertible No 2.10 Issue Features 2.05 Volume Tax Status Rule 144a Taxable Not subject to Rule 144A Jul 18 Jul 28 Aug 05 bun 1 Current Yield Spread Issue Details Benchmark Treasury Yield Spread Treasury Yield Latest Date US Treasury 7-10 Yr Yld USD 0.69% 1.51 % 2016-08-17 Amount Outstanding 1.8 Bil Par Value 1,000 Issue Size 1.8 Bil Coupon Coupon Type Fixed Coupon Frequency Semi-Annually 2.875 % Day Count Basis 30/360 First Payment Date 2016-04-27 Accrual Start Date 2015-10-27 Collateral Type Payment Currency US Dollar 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 Briefly describe the prospects for this company include significant factors like 4. 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? 6. What is the face value for this bond? 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? 10. Is the corporation currently paying interest as scheduled? Yes No 11. What is the maturity date for this bond? 12. What is Standard & Poor's rating for this bond? Neutral (credit watch positive) 13. What is Morningstar's rating for this bond? 14. What was the original issue date? 15. Is the bond callable? Yes No 16. Is the bond secured with collateral? Yes No 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
