Long-term debt of a firm

Assignment Help Financial Management
Reference no: EM131047272

At the beginning of the year, long-term debt of a firm is $302 and total debt is $336. At the end of the year, long-term debt is $266 and total debt is $346. The interest paid is $32. What is the amount of the cash flow to creditors?

Reference no: EM131047272

Questions Cloud

Interest rates in the form of add-on interest : Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year loan is quoted with a 19.0% interest rate and you borrow $1,000, then you pay back $1,080. But you make these payments in monthly installments of $90 eac..
Prepare an income statement for the first month : Jake and Dan start a business to build custom bicycles. Jake invests personal funds of $25,000 and Dan invests $20,000. Grandma Jake invested $5,000 with a preference to be cashed out after one year for $6,000.  Prepare a balance sheet for day zero, ..
Gross profit margin-what is the level of inventories : (Efficiency analysis) The Brenmar Sales Company had a gross profit margin (gross profits + sales) of 25 percent and sales of $8.1 million last year. 73 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's inventory t..
Company imports computer motherboards : Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2855 S$/US$. You have just placed an order for 24,000 motherboards at a cost to you of 231.00 Singapore dollars each. You will pay for the shipment wh..
Long-term debt of a firm : At the beginning of the year, long-term debt of a firm is $302 and total debt is $336. At the end of the year, long-term debt is $266 and total debt is $346. The interest paid is $32. What is the amount of the cash flow to creditors?
Coupon bond outstanding : Roadside Markets has a 6.75 percent coupon bond outstanding that matures in 10.5 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 7.2 percent? (Please show work)
New homes has a bond issue with a coupon rate : New Homes has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000 and a market price of $972. Interest is paid semiannually. What is the yield to maturity?
Cash flow data-what is the projects irr : Simms Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected.
Nonconstant growth dividend model : Rework problem 11 with a new assumption—that dividends at the end of the first year are $1.60 and that they will grow at 18 percent per year until the end of the fifth year, at which point they will grow at 6 percent per year for the foreseeable futu..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the NPV break-even level of sales

Modern Artifacts can produce keepsakes that will be sold for $70 each. Nondepreciation fixed costs are $2,300 per year, and variable costs are $35 per unit. The initial investment of $6,000 will be depreciated straight-line over its useful life of 5 ..

  Give two examples of management communication

Give two examples of management communication through corporate actions (things that they do instead of things they say) that convey information to shareholders. Explain what information is conveyed through those actions.

  What is the equivalent annual cost of this equipment

Bridgton Golf Academy is evaluating new golf practice equipment. The "Dimple-Max" equipment costs $99,000, has a 5 year life, and costs $9,100 per year to operate. The relevant discount rate is 12 percent. Assume that the straight-line depreciation m..

  Firms current debt-to-equity ratio

Feera Corporation is evaluating a new project that costs $45,000. The project will be financed using 40% debt and 60% equity, thus maintaining the firm’s current debt-to-equity ratio.

  Which is also the average collection period

Dome Metals has credit sales of $126,000 yearly with credit terms of net 90 days, which is also the average collection period. What will the net gain or loss be to the firm if this discount is offered?

  What would happen to net income and cash flow

Butterfly Tractors had $14 million in sales last year. Cost of goods sold was $8 million, depreciation expense was $2 million, interest payment on outstanding debt was 1mil and the firm’s tax rate was 35%. What would happen to net income & cash flow ..

  Compute the firms actual interest cost in dollars

In mid-December, a bank Treasurer projects that loan demand will require a S10 million borrowing on March 15. The contractual loan rate is 125 basis points over LIBOR. State what kind of hedge would he take and why. Compute the firm's actual interest..

  Annual rate of return on a bond with annual coupon rate

What is the yield to maturity on a $1,000 face value discount bond maturing in two years that sells for $800 today? What is the annual rate of return on a bond with an annual coupon rate of 10 percent, a face value of $100,000, and its price rises fr..

  Portfolio return-what is your portfolio return

Portfolio Return At the beginning of the month, you owned $5,500 of General Dynamics, $7,500 of Starbucks, and $8,000 of Nike. The monthly returns for General Dynamics, Starbucks, and Nike were 7.44 percent, 21.36 percent, and 20.54 percent. What is ..

  Written a payroll program-what is this mistake called

Joe Blow has written a payroll program for her company to use and has made a mistake in the code. He has computed the gross pay by dividing the hours worked by the hourly rate instead of multiplying the two amounts. What is this mistake called?

  Using the straight-line method

Please show/explain work. Scott Investors, Inc, is considering the purchase of a 412,000 computer with an economic life of 5 years. The computer will be fully depreciated over five years using the straight-line method.

  Assets-liabilities and equity-total revenue and net income

Select one (1) U.S. publicly traded company and review its most recent Annual Report. Use the Income Statement and Balance Sheet to determine the changes in: assets, liabilities, and equity, total revenue and net income.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd