As a team, select an industry to analyze. Reuters provides lists of industries and their makeup at www.reuters.com . Each team member should acquire the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (Library files, the SEC EDGAR service at www.sec.gov , Compustat CD, or the company itself are good sources.)

Required:
On an individual basis, each team member should 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 team, write a short report comparing and contrasting your companies.
1. Has your company issued any long-term bonds or notes? If so, read the footnote 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 debt-to-equity 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 to 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 times interest earned ratio measure in general?
b. Compute the ratio for the last three years. If interest expense is not separately disclosed, you will not be able to compute the ratio. If so, state why you think it is not separately disclosed.
c. What do your results suggest about the company?
d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company differs from 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?