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Analysis the Sprint Nextel Corp - Essay Example
Author : wklocko
Finance & Accounting
Pages 6 (1506 words)
This company was established in 1899 and has been expanding its operations to date. The company went into international operations in 1990. It was the first company to offer internet in access 1992. …
In 2001, it became the first company to introduce a wireless Java for networking. Sprint Nextel Corporation offers a range of fixed, mobile, and broadband communications products and services. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies. Internationally, it is known for internet networking and major development in technology. The cost of debt for the company can be computed by analyzing the various components of debts. These include bond issues, treasury bills, loans etc. Sprint Nextel has a variety of bond issues with different maturities (see table 1). This analysis will focus on the head quarter’s debt component analysis only (see table2). The coupons outlined here are three with the respective maturity dates. The value of a similar bond at similar rates is analyzed as having a par value of $1000 for the Canadian debt and $2500 for the unsecured notes. These are used to find the price of each bond. By discounting the annuity and the lump sum at maturity for each bond, the price of each bond is obtained. This method uses trial and error to ascertain the cost of each bond. ...