Fi 516 Mini Case
FIN-516 – WEEK 2 – MINI – CASE ASSIGNMENT 1. What is the name of the company? What is the industry sector?
General Electric Industrial Goods 2. What are the operating risks of the company?
3. What is the financial risk of the company (the LT debt to total capitalization ratio)?
Debt to equity = Total debt ÷ GE shareowners’ equity
= 11,589 ÷ 116,438 = 0.10 4. Does the company have any preferred stock? (shares/book value/market price and value)
GE does not have any preferred stock outstanding that is available to the public. 5. What is the capital structure of the company?: Short term portion of Long Term Debt, Long Term Debt, Preferred Stock (if any), and market value of Common Stock issued and outstanding? (Provide table with dollar value for each component, total, and percentage for each; sum par and a pic for common and preferred; if there are multiple classes of common--present $/% for each, and total for common stock. Provide both book value and estimate of market value (for debt assume book and market value is same, for equity base market value on stock price and shares outstanding)
Liabilities Dec 31 2010
Current Liabilities
Accounts Payable 58,373,000
Short/Current Long Term Debt 166,869,000
Other Current Liabilities 59,891,000
Total Current Liabilities 285,133,000
Long Term Debt 243,459,000
Other Liabilities 70,647,000
Deferred Long Term Liability Charges (131,000)
Minority Interest 1,696,000
Negative Goodwill -
Total Liabilities 600,804,000
Stockholders ' Equity
Misc Stocks Options Warrants -
Redeemable Preferred Stock -
Preferred Stock
General Electric Industrial Goods 2. What are the operating risks of the company?
3. What is the financial risk of the company (the LT debt to total capitalization ratio)?
Debt to equity = Total debt ÷ GE shareowners’ equity
= 11,589 ÷ 116,438 = 0.10 4. Does the company have any preferred stock? (shares/book value/market price and value)
GE does not have any preferred stock outstanding that is available to the public. 5. What is the capital structure of the company?: Short term portion of Long Term Debt, Long Term Debt, Preferred Stock (if any), and market value of Common Stock issued and outstanding? (Provide table with dollar value for each component, total, and percentage for each; sum par and a pic for common and preferred; if there are multiple classes of common--present $/% for each, and total for common stock. Provide both book value and estimate of market value (for debt assume book and market value is same, for equity base market value on stock price and shares outstanding)
Liabilities Dec 31 2010
Current Liabilities
Accounts Payable 58,373,000
Short/Current Long Term Debt 166,869,000
Other Current Liabilities 59,891,000
Total Current Liabilities 285,133,000
Long Term Debt 243,459,000
Other Liabilities 70,647,000
Deferred Long Term Liability Charges (131,000)
Minority Interest 1,696,000
Negative Goodwill -
Total Liabilities 600,804,000
Stockholders ' Equity
Misc Stocks Options Warrants -
Redeemable Preferred Stock -
Preferred Stock
Bibliography: http://finance.yahoo.com/q/pr?s=GE http://www.ge.com/pdf/investors/events/01202012/ge_webcast_pressrelease_01202012.pdf http://www.wikiwealth.com/wacc-analysis:ge Source: Based on data from General Electric Co. Annual Reports http://www.google.com/finance?authuser=0&q=ge&ei=nZ5WULDvKa78iQKIIg http://www.ge.com/ar2011/pdf/GE_AR11_SupplementalInfo.pdf http://finance.yahoo.com/q/pr?s=GE