A- long-term credit rating

Assignment Help Finance Basics
Reference no: EM13833660

Consolidated Edison Inc. (Ticker: ED) has an A- long-term credit rating from Standard & Poor's, and a 50% net debt to capitalization ratio.  ED is a regulated electric utility serving the New York metropolitan area.  Newmont Mining Corp. (Ticker: NEM) has a BBB+ long-term credit rating from Standard & Poor's (a small difference from the rating on ED), and a 9% net debt to capitalization ratio, substantially lower than ED's.  NEM is a global mining company.  Discuss the factors that may explain the similarity in credit quality but large differences in financial leverage.

Summary information on each company can be found at either finance.yahoo.com (use the ticker symbol provided above for each company; business and financial information is available via hyperlinks on the left side of the summary quote web page).

 

 

Reference no: EM13833660

Questions Cloud

Identify the key accounting issue : Read each one and attempt to identify the key accounting issue or issues involved. Write 2/3 bullet points for each, there are six sections to answer.
Vision and mission statements of the bama companies : How are the vision and mission statements of The Bama Companies reflected in its management processes
Find a function that models the brightness of the star : Find a function that models the brightness of the star as a function of time
Journalize the transactions-waters hardware store : Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Water's ledger showed Cash of $11,205 and Common Stock of $11,205.
A- long-term credit rating : Consolidated Edison Inc. (Ticker: ED) has an A- long-term credit rating from Standard & Poor's, and a 50% net debt to capitalization ratio.  ED is a regulated electric utility serving the New York metropolitan area.  Newmont Mining Corp.
What is the maximum number of people who will get a balloon : What is the maximum number of people who will get a balloon
Demonstration speech taughtsomething detailed about a topic : Demonstration Speech taught us) something detailed about a topic with which we are already familiar. For instance, we know George Washington was our first President, but a lot of people don't know much about his life prior to the military or servi..
Types of competitive advantage : Discuss the three basic types of competitive advantage. Illustrate a company that has achieved all of them
How many atoms are there per unit cell : (a) How many atoms are there per unit cell (atoms actually inside the unit cube)? (b) Make a sketch (as best you can) of the lattice characterized by the part (a) unit cell. Use dots to represent the atoms and include at least three parallel plancs o..

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Why would a firm issue convertible securities

Why would  a firm issue convertible securities?What are the advantages and disadvantages of issuing convertible securities?What are benefits to a firm towrd issuing standard bonds or prefered securitis?

  If shares of common stock of the samson co offer an

if shares of common stock of the samson co. offer an expected total return of 12 and if the growth rate in future

  Find the expected rate of return and the market risk

Stock A has a beta of .2, and investors expect it to return 5%. Stock B has a beta of 1.8, and investors expect it to return 17%. Use the CAPM to find the expected rate of return and the market risk premium on the market.

  What is the beta of stock b

Currently, the risk-free rate is 4 percent. Stock A has an expected return of 13 percent and a beta of 1.2. Stock B has an expected return of 9 percent. The stocks have equal reward-to-risk ratios. What is the beta of stock B?

  If the market price of a share is currently 100 and you

the risk-free rate of return is 8 the expected rate of return on the market portfolio is 15and the stock of xyrong

  As is common in commercial real estate

As is common in commercial real estate

  The stock has just paid a dividend of 150 per share angeln

you are trying to decide whether a share of stock in angeln inc. is a good buy at 27.50 a share the most recent closing

  Specialty chemicals company scc pays out 50 of its net

specialty chemicals company scc pays out 50 of its net income as cash dividends to its share- holders once each

  Which company had higher operating leverage

PepsiCo's operating income was 8.04 billion in 2009 and 6.96 billion in 2008. Based on these figures, which company had higher operating leverage?

  Purpose of integrated reporting

Discuss the purpose of integrated reporting & discuss why an organization would use integrated reporting?

  The financial statements for joseph corporation contained

the financial statements for joseph corporation contained the following information.accounts receivable5000sales

  What is knights stock price

Knight Inc. is expected to pay a $1.80 dividend next year. The dividend in year 2 is expected to be $2.10. The dividend in year 3 is expected to be $2.50. After that, the dividend is expected to grow at a constant rate of 2%. The cost of capital i..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd