The company in question is Biogen INC (BIIB)

What are differences between primary market and secondary market transactions? Give an example(s) by utilizing your company’s stocks and/or bonds.

Find and analyze “Total Liabilities” in your company’s “Balance Sheet Items (in %)" -This is your company’s common-size balance sheet. The information provides your company’s total debt ratio. Discuss changes of your company’s capital structure during the 5-year period(internal), then compare and analyze capital structure changes between your company and its competitor’s (external).

Find and analyze your company’s “% of long term debt” ratio, and “% of Other Long-Term Liabilities” if available, then analyze “Interest Coverage” ratios. Discuss your company’s ability to cover its interest expenses over time (internal) and its ability to cover its interest relative to its competitor’s (external).

Discuss the pros and cons of using debt financing, and the pros and cons of using equity financing.

From your company’s manager’s point of view, what are the main differences between debt vs. equity financing? (Discuss different tax treatments of interest expenses vs. dividend payments).

Discuss the consequences if your company fails to fulfill its debt obligations.

Discuss financial distress costs and bankruptcy risks due to increase of financial leverage (increase of level of debt).

Based on your observation, should you recommend the management to increase/decrease borrowing in 2021? Explain.

Answer rating: 100% (QA)

The primary market is the market where securities are first offered for sale to the public The secondary market is the market where securities are traded after they are first offered to the public in ... View the full answer