Reference no: EM133069730

In Chapter 1 of the textbook you learned that a balance sheet is a financial statement that "enumerates at a moment in time what an economic unit, such as a firm, owns, its assets; what it owes, its liabilities; and the owner's contribution to the firm, the equity" (p. 3). In Modules 3 and 4 the focus is on investment in equity (preferred and common stock) and long-term debt (bonds).

The discussion activity for Module 4 entails visiting a firm's website, reviewing its balance sheet, and reporting on how the firm is financing investments in assets: preferred stock, common stock, and long-term debt. Here are the steps to follow:

Choose a firm whose stock is traded on stock exchanges, and then visit its website.

Go to the Investor Relations area of the website (or a similarly titled area such as Investor Information, Investors, Investor Resources, etc.), and then locate the firm's annual report (typically found under Financial Reports, Financial Statements, Financial Facts, Financial Document, or some such link).

From the report, determine how the firm is financing investment in assets: long-term debt, preferred stock, and common stock.