Support your position with substantiated evidence. This project will provide an opportunity to critically analyze the obligations and long term commitments of your companies. Name three liabilities would you expect to see for your companies other than the normal trade payables, accrued expenses, and notes payable. Explain how you think these amounts would be estimated. Include in your discussion what factors are critical to these estimates.
Some companies have preferred stock that has debt like features.
If your company has these instruments describe their terms. Regardless of whether your company has debt-like securities, discuss whether these securities should be treated like debt or equity when analyzing the solvency of a company. Under what circumstances would your companies early retire any of their debt. Ratio Analysis 1. For the most recent year-end, compute the debt to total assets, times interest earned, cash debt coverage ratio, and book value per share.