Compute the ratio of long-term debt to total assets

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Reference no: EM132548320

1. Alcoa produces aluminum and aluminum products. Go to its website at www.alcoa.com and follow these steps: Under "Investors" select "Financial Reports. Select "Annual Reports and Proxy Information". download the latest annual report. scroll all the way down to "Selected Financial Data".

2.One of the characteristics of high beta stocks is that they often have volatile earnings performances. lets check out Alcoa. Compute the year-to-year percentage change in :Diluted-income from Continuing Operations" for each of the five years.

yr1=

y2=

y3=

y4=

y5=

*Do the earning appear to be volatile?

3.Companies with high betas and inconsistent performance are encouraged to keep their debt ratios low (under 50 percent). Compute the ratio of long-term debt to total assets for each of the five years for Alcoa.

*What does the patter look like to you?

Reference no: EM132548320

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