The SEC Form 10-K of Google is reproduced online at www.wiley.com/college/pratt.
Review the Google 2012 SEC Form 10-K, and answer the following questions:
a. Compute Google’s long-term debt (include deferred income taxes and all other long-term liabilities) to total asset ratio for 2011 and 2012. Discuss the change.
b. What interest rates are stated in the various long-term obligations of Google?
c. Review the financing section of the statement of cash flows and comment on the change in the company’s reliance on long-term debt over the last three years.
d. Comment on the comparison between the market value of Google’s long-term debt and its carrying value on Google’s balance sheet.
e. How does Google reduce the risk of interest rate fluctuations?