Subtopics: Bond ratings, Credit enhancements
Learning Objectives:
Undergraduates should be able to
- Solve problems relating to applications of the time value of money
- Classify activities as long-term liabilities
- Explain the difference between capital and operating leases and their implications to financial reporting
- Explain types of bond financing, including issuance, payment of interest, and the retirement of bonds
Graduate students should also be able to
- Evaluate an organization’s management of its debt and equity instruments
- Analyze lease versus buy decisions
- Evaluate an organization’s capital structure
- Calculate the cost of capital