Obtain Archer Daniels Midland Company’s (ADM) Form 10-K for the fiscal year ending on June 30, 2006. To obtain the Form 10-K you can use the EDGAR system following the instructions in Appendix A, or it can be found under the “Investor Relations” link on the company’s website at www.admworld.com/naen. Read the following sections of the 10-K: “General Development of Business” under the “Item I. Business” section; Consolidated Statements of Cash Flows; Note 6—Debt and Financing Arrangements.
a. What major plant expansions did ADM announce during 2006? How much does ADM estimate these expansions will cost?
b. How much did ADM spend on new property, plant, and equipment in its 2006 fiscal year?
How much did ADM spend on all forms of investments in 2006?
c. Where did ADM get the cash used to make these investments?
d. What interest rate did ADM agree to pay on its most recent long-term borrowings?