Company Name: BRISTOL MYERS SQUIBB CO
Symbol: BMY4831824
CUSIP: U11009BB9
Bond Type: CORP
Date of Issue: 11/13/2020
Introduction: (25 points) Please construct a comprehensive introduction that lays out your project.
Section 1: Company Background: (30 points) This section should include what industry the firm is in, its products, its competitors, and the stated main reason for needing capital (to fund receivables, capacity expansion, retire older debt, etc.). If you can’t find a specific discussion about this, then use your judgment as to why you think the funds were needed and explain your reasoning.
Section 2: Balance Sheets: (30 points) What did the balance sheet look like in the quarter just prior to issuing the bonds? Include both a copy from before the issue and after the issue in an appendix to your paper. From the “Key Financial Ratios” link contained in the Week 2 Lesson, calculate Return on Equity (ROE), one debt ratio, and at least one other ratio of your choice both before and after the bonds were issued, and discuss what the results indicate and why you think they are important to your report.
Section 3: Trends in YTM and Price: (30 points) At what price and yield-to-maturity (YTM) was the initial offering sold? Tabulate the price and YTM of the issue at the end of each calendar quarter for the last six quarters. Then, using Excel, plot the tabulated values to visualize the trends in YTM and prices and include the graph/chart in an Appendix. In your paper, briefly discuss your graph/chart and what the results indicate.
Section 4: Rate of Return: (30 points) If you were one of the original investors in this issue and you had invested $10,000, what would your total return be if you sold the securities at today’s market price? Compute the current duration of the bond and add a brief discussion about your calculations and what the results indicate.
Conclusion: (30 points) Based on your research in Sections 1-4, discuss at least three overall conclusions about this offering. In your conclusion, please recap your analysis so that a reader can draw upon your expertise in order to make an educated investment decision. The conclusion should draw together all that you have researched and analyzed and provide a well-supported investment recommendation.
Overall: Organize your project with a title page, table of contents, and Works Cited page. Clearly label each section and ensure pages are numbered. SHOW ALL CALCULATIONS. If calculations involve more than one or two lines, put them in an appendix and show only the end results in the main paper. Sections should flow smoothly from one to another to ensure continuity. Please edit your report for grammar and spelling, so that it is something of which you can be proud.
