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At&T Case Study

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Submitted By reneyoung29
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AT&T

Professor: Dr. Yates
Group 12

December 04, 2014

Authors: Lauren Young, Sarah Yeakel,
Muhammad Alkahlout, Alejandro Perezreynoso, Festus Oguhebe Jr.

AT&T Inc., a holding company incorporated under the laws of the State of Delaware in 1983, has its main offices in Dallas, Texas. Formerly known as SBC Communications Inc. (SBC), AT&T was one of several regional holding companies originally created under AT&T Corp.’s (ATTC) local telephone companies. On January 1, 1984, SBC Communications separated from ATTC and became an independent publicly traded telecommunications services provider. The company merged with Pacific Telesis Group in 1997, Southern New England Telecommunications Corporation in 1998 and Ameritech Corporation in 1999. The merger expanded the company’s wireline operations into a total of 13 states. In November 2005, one of the SBC subsidiaries merged with ATTC, creating one of the world’s leading telecommunications providers. In connection with the merger, SBC Communications Inc. became “AT&T Inc.” Currently, AT&T has ninety-one (91) outstanding bonds. AT&T has forty-one (41) callable bonds. AT&T has a coupon rate ranging from 0.618 to 13.750 and a maturity date ranging from 2006 to 2097 (12/15/2006 to 07/15/2097). The interest rate, or yield, for the bonds ranges from -13.217 to 7.460. AT&T’s debt is rated from A to –A-. Investing in bonds depends on the goals of the investor, the time frame, and the amount of risk the investor is willing to take. For an individual seeking to place $100,000 in a safe investment for five or more years in other to generate a higher return than is possible with treasury securities, there are several options for the individual. AT&T issues bonds with coupon rates ranging from 5.950 to 9.100 with over ten fixed coupons. The maturity

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