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SUPER LOST AND I NEED HELP TO COMPLETE THIS HOMEWORK ASSIGNMENT WHICH IS PASTDUE

ID: 2659672 • Letter: S

Question

SUPER LOST AND I NEED HELP TO COMPLETE THIS HOMEWORK ASSIGNMENT WHICH IS PASTDUE... IF SOMEONE CAN HELP ME WITH THIS AND I WOULD ALSO LIKE TO UNDERSTAND IT. I AM FOOT DEEP IN MY FINANCE CLASS AND I HAVE NO IDEA WHATS GOING ON.. MAJOR HELP!!


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


Go to the Investor Relations area of the Web site (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.  PLEASE CREATE SMALL DATA SHEET AND FOLLOWED BY EXPLANATION

Explanation / Answer

The selected company is Cisco . The folowwing information was retrieved from its balance sheet.


Cisco's totals asset = Long term debt + Preferred stock + commo stocks = 12,928,000,000 +0+42,297,000,000 = 55225000000


Long term percentage = 12,928,000,000/ 55225000000 = 23.41%

Common stock percentage = 1-23.41%= 76.59%


To summarize, 23.41% of investment is financed by long term debt and remaining by common stocks. Company does not use preferred stocks.


Cisco's balance sheet