Bonds and Investment: Overview of AAON, Dividend History and Bond Valuation

RUNNING HEAD: BONDS AND INVESTMENT
Bonds and Investment

Bonds and investment 2
Question 1
Overview of AAON
AAON Inc. is a company that deals in manufacturing and designing of heating, ventilation
and air conditioning equipment. It together with its subsidiaries is involved in engineering,
designing and marketing of its products across the United States and Canada. It sells its
products for commercial and residential purposes. Previously, the company was involved in
making and selling the equipment for new construction and replacement markets. The
company operates two markets, out which one is rooftop and condensing unit markets which
mainly includes units installed on commercial or industrial structures. They are usually air
handling units, self-contained units, chillers, packaged outdoor mechanical rooms which are
available in all sizes to commercial and industrial buildings. Another one is the replacement
market which basically deals in the products that are installed to replace existing damages
components (Reuters.com. 2018).
The main competitors of the company are Lennox International, Inc., Ingersoll Rand Limited,
Johnson Controls Inc. and United Technologies Corporation, with whom it competes in the
market. The chairman and founder of the company is Norman H Asbjornson and it was
founded in 1988. Currently, AAON is listed on NASDAQ and has its headquarters situated in
United States (Bloomberg.com. 2018).
Recent performance of shares

Bonds and investment 3
(Source: NASDAQ.com).
The above picture shows the graphical representation of the trends followed in the share price
of AAON INC over the past five years. In other words, it shows the performance of
company’s share price for year 2014 to 2018. An increasing trend can be observed in the
prices as well as many fluctuations are been there during the period of 2014 to 2016. Initially
the share price started rising and in January 2014, shares reported a price of $20.94. After that
a fall has been noticed for the following months and the price stepped down to $17.11 in
April 2014. Again it rises to $22.96 in mid of the month and then a decreasing trend was
there for rest of the year. Starting from 2015, prices continues to rise along with many
fluctuation and in November 2015 the shares were closed at $25.15.
After this, a slow growth is been noticed in the initial months of 2016. Prices raised slowly
and in July 2016, the price of AAON’s share was reported at $28.11. After facing many ups
and downs, the AAON’s share price reaches to $33.90 in November 2016 and after that it
continues to rise till the start of 2017. During the year 2017, a huge decline was there in
month of August and the prices steeped down to $31.65 from $37.50. Post this, it continues to