Results of the Research Project Part 2 (Cummings)As an initial response to the discussion topic...

Question

Results of the Research Project Part 2 (Cummings)
As an initial response to the discussion topic please create a Power Point presentation of 7-8 slides plus the title slide that contains the main results of all questions part 2 of the Research Project.
These slides should include your recommendations, with supporting rationale,
a. as to whether the assigned company's recent trend in financial and stock performance is of sufficient financial strength to wa
ant entering in a long-term investment in bonds and/or stocks if the company.
. on the financial strategy of the company, how to best balance THE COMPANY’S financial leverage to optimize shareholder wealth going forward taking into consideration the company's cu
ent market position, credit rating, dividend policy, etc.

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Prince · Accepted Answer

PowerPoint Presentation
FINC 330 Project Descriptions
Research Project Part 2
Stock and Bond Analysis - (Cummins Inc. (CMI))
 
Presented by :  Hem Rendall
Content
Financial Leverage Position of Cummins Inc
Bond performance of Cummins Inc
Stock performance of Cummins Inc
Historical Stock prices trend Analysis of Cummins and its Competitor
Buying the Bonds of Cummins
Recommendation
Financial Leverage Position of Cummins Inc
Company is doing a good job of 
financing its assets as Cummins’s 
debt ratios appear to be lower 
than they were in the past. 
Additionally, company still has billions in cash & short-term investments available for use in the business
Interest coverage ratio of the company has remained more than 20 times in all the last 4 years
	Particular	30-Dec-21	30-Dec-20	30-Dec-19	30-Dec-18
	Debt-to-assets ratio 	0.19	0.23	0.21	0.24
	Debt-to Equity ratio	0.18	0.22	0.19	0.16
	Interest Coverage ratio	25.78	24.38	27	25.15
Bond performance of Cummins Inc
Out of the given two bonds of Cummins Inc, I would pick the second one as its interest rate is lower and has a negative correlation with bond prices. 
Callable bond is one that the issuer may redeem before the bond reaches maturity. These bonds are callable, and my decision would not change if the bonds were non-collable.

Results of the Research Project Part 2 (Cummings) As an initial response to the discussion topic please create a Power Point presentation of 7-8 slides plus the title slide that contains the...

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