Problem 1: Compare the 2007 annual report for ACE Aviation and the 2007 annual report for Nortel Networks Corporation. Explain the similarities and differences in how the 2007 assets have been financed between these two companies. Also comment on the productivity of the assets during 2007 for each of the two companies. In your explanations and analysis, include comparisons to the prior fiscal year (i.e., 2006) where applicable. The written explanation should be limited to one typed page, with any supporting calculations presented in appendices and/or exhibits.
Problem 2: Based on your analysis in (a), which company's financing arrangement do you prefer, and why?
Note: Include all supporting calculations.
PLEASE CLICK ON THE FOLLOWING LINKS TO ACCESS THE ANNUAL REPORTS:
ACE AVIATION 2007 ANNUAL REPORT:
https://docs.google.com/fileview?id=0BzzLciL8kFB_MjU5N2M1NzktODZjOS00ZTA3LWJiZDItOGQ5ZWNmMTMzMTgy&hl=en
NORTEL NETWORKS CORPORATION 2007 ANNUAL REPORT:
https://docs.google.com/fileview?id=0BzzLciL8kFB_ZTAxMDU4MzktN2VhMi00YWJkLWFkODYtNmMyNWIzNDYxNWIy&hl=en