a. Retrieve the annual report of Heineken International by going to the “Investors” section of its Web site (www.heinekeninternational.com/investors.aspx). Examine Heineken’s internal and external sources of funds and then compare your findings with Figure 14.2 in this chapter. (See Heineken’s annual cash flow statement.) What was Heineken’s primary use of funds?
b. Using book values, find the balance sheet debt ratios for Heineken in 2008 and 2009. How has the debt ratio changed if one calculates debt ratios using the market value of equity? You can use Yahoo Finance Web site to retrieve historical stock prices for Heineken International (HEIA.AS).
c. Locate a Canadian company, preferably in the same industry as Heineken, and redo the calculations required in parts (a) and (b) for this company. What insights do you get when you compare the results for this company with that of Heineken?