Study Name
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Wal-Mart Global Environment
Wal-Mart continues to grow its empire by reviewing many factors. These factors include price, production, and composition inputs. Wal-Mart must also analyze if global competition affects Wal-Mart, and if the company should continue, expand, or reduce its current operations to maximize profits. Wal-Mart continues to analyze the effects of government policy, social diversity, and business ethics. For Wal-Mart to make a smart decision, one must begin by reviewing price recommendation. Team “A” also will show how Wal-Mart debt securities reports show on the financial statements, how Wal-Mart invest in stocks and debt securities. The team will go farther and show why Wal-Mart invests in stocks and debt securities, what are Wal-Mart’s relative risks and rewards of equity versus debt securities and what the difference is between equity and debt securities.
How are the corporation’s debt securities reported on the financial statements?
As defined by Investopedia “Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, collateralized securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.
The interest rate on a debt security is largely determined by the perceived repayment ability of the borrower; higher risks of payment default almost always lead to higher interest rates to borrow capital.” The statement of cash flow defines the financial activities during a reporting period for a company. The cash flow statement will define the interest, sale of debt or securities or the purchase of debt or securities with the exception of investments and financing activities that do not require the use of cash.
Wal-Mart has an AA credit rating (2012
References: Anderson, K. (2006). Globalization and the Wal-Mart Effect. Retrieved from http://www.probe.org/site/c.fdKEIMNsEoG/b.4218005/k.783A/Globalization_and_the_ WalMart_Effect.htm Investopedia Cash Flow