E-investments Exercise (60 Marks)
a). Find 10 publicly traded companies and fill in the following information (Table 1: Issuer Level Financial Information), you should calculate the working capital and Altman Z-Score based on the information you find (27 Marks).
Here are the requirements:
Firms’ stock must be publicly traded on major stock exchange
Firms must have a credit rating score from Standard & Poor’s (Long-term issuer credit rating)
The rating scores from these 10 firms should cover a wide range of credit rating levels with the following specific requirements:
at least one firm’s rating score is at AAA level;
at least one firm’s rating score is at AA level (any of AA+, AA, AA-);
at least one firm’s rating score is at A level (any of A+, A, A-);
at least one firm’s rating score is at BBB level (any of BBB+, BBB, BBB-);
at least one firm’s rating score is at BB level (any of BB+, BB, BB-);
at least one firm’s rating score is at B level (any of B+, B, B-);
at least one firm’s rating score is at CCC level (any of CCC+, CCC, CCC-)
The last Column Altman Z-Score should be calculated based on the formula’s on page 458 in the textbook.
Working capital is the difference between current assets and current liability.
All the 10 firms should be from the same country.
b). Find one bond for each of the above 10 companies, and fill in the information in Table 2: Bond Level information. You should calculate the number of years until maturity, average yield to maturity, and Bid-ask spread (27 marks).
Here are the requirements:
All the 10 bonds should be bullet bonds (callable, puttable, extendable bonds are not allowed)
All the 10 bonds should have similar time to maturity (You cannot have one bond maturing in half year, but the other ones maturing in 10 years). You don’t need to make them have the exact same maturity, but you should try your best to find the closest matches.
The Number of years until maturity is the difference between the maturity date and the current time you obtain the bond information, rounded to one digit after the decimal point.
The average yield to maturity is the average of the bid yield to maturity and ask yield to maturity.
The bid-ask spread is the difference between ask price and bid price.
Given these two tables’ information, answer the following questions:
a). What is the relationship between Altman Z-Score and credit rating? (2 marks)
b). What is the relationship between the average yield to maturity and credit rating? (2 marks)
c). What is the relationship between the bid-ask spread and credit rating? (2 marks)
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.