Reference no: EM131881693
Question: 1) George Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,444,000 of 12% term corporate bonds on March 1, 2014, due on March 1, 2029, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%
a) What is the selling price of the bonds?
2) Alan Jackson invests $43,500 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Alan withdraws the accumulated amount of money.
a) Compute the amount Alan would withdraw assuming the investment earns simple interest
b) Compute the amount Alan would withdraw assuming the investment earns interest compounded annually.
c) Compute the amount Alan would withdraw assuming the investment earns interest compounded semiannually.
|
Calculate the value of the loan at the end of year 7
: What is the value of this amount, given that interest on the Credit Union's loans is 10%? What is the value ofthe loan at the end of year 7?
|
|
Compute the depreciation expense for each of first two years
: Compute the depreciation expense for each of the first two years, using the sum of the years -digits method.
|
|
What bonds payable amount will clearwater report
: What bonds payable amount will Clearwater report on its December 31 balance sheet? Prepare journal entry to record interest payment on December 31 of this year?
|
|
What should be the stock price today
: Non-Constant growth stock Valuation Stewart Industries just paid a $3.00 per share dividend on its common stock yesterday (i.e., D0 = $3.00).
|
|
What is the selling price of the bonds
: George Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant.
|
|
What were the weighted-average accumulated expenditures
: What were the weighted-average accumulated expenditures for 2017? What were weighted-average accumulated expenditures for 2018 by end of construction period?
|
|
How much money will the account have after 10 years
: After 10 years, I start using the account, withdrawing X dollars per month. I emptied the account in five years. How big is X.
|
|
What should be the overall effect of change
: Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below: Per Unit Percent of Sales Selling price $160 100%
|
|
Find the irr of the following series of cashflows
: Find the IRR of the following series of cashflows if the cost of capital is 16%. CF0 = $ -10,000, CF1 = 5,000, CF2 = 3,000, CF3 = 3,200, CF4 = 3,000.
|