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Acc 300 Week 3 Outline

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Verizon Wireless Corporation Outline

Verizon Communications Outline Introduction: Verizon Communications Inc., based in New York City and incorporated in Delaware, was formed on June 30, 2000, with the merger of Bell Atlantic Corp. and GTE Corp. The mergers that formed Verizon were among the largest in U.S. business history, culminating in a definitive merger agreement, dated July 27, 1998, between Bell Atlantic, based in New York City, and GTE. Verizon was launched on April 3, 2000, and the wireless venture began operations as Verizon Wireless on April 4. GTE's wireless operations became part of Verizon Wireless; creating the nation's largest wireless company. Verizon today is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. 1) How are Verizon’s debt securities reported? A. Definition of debt security B. How is utilized on their financial statement? C. What did their financial statement reveal? 2) How are Verizon’s stock investments reported on their financial statement? A. Definition of stock investment B. How is it utilized on their financial statement C. What did their statements reveal about their stock investments 3) Why does Verizon invest in stocks and debt securities? A. To fund network expansion and modernization, repay external financing, pay dividends, repurchase Verizon common stock from time to time and invest in new businesses. 4) What are Verizon’s risks and rewards of equity versus debt securities? A. Verizon’s relative risks of equity versus debt securities: 1. Example 2. Example B. Verizon’s rewards of equity versus debt securities: 1. Example 2. Example
Conclusion:
Verizon is having difficulty matching its performance levels of the past years. The company has displayed increases to its costs while unable to match it with increased revenues. As a result, it is taking on additional debt to finance its ventures.

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