Horizons plc had the following bank loans outstanding during the whole of 20X8 which form thecompany's general borrowings for the year:10% loanrepayable 20X98% loanrepayable 20Y2Select one:O a. £850,000O b. £892,500O c. £305,625d. £500,000e. £541,875O f. £425,000£m2575Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £4.5 millionon that date to fund construction. On 1 September 20X8 an additional £6 million was withdrawn for thesame purpose.Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31December 20X8.

Introduction: Interest costs incurred during construction period can be capitalized to the extent of…

Answered: Horizons plc had the following bank…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following financial statement is for the current year. From the past information, you know that 8% of fixed-rate mortgages prepay each year. You also estimate that 9% of checkable deposits and 15% of savings accounts are rate sensitive. KLM Bank Assets Liabilities Reserves $ 750,000 Checkable Deposits $ 7,500,000 Securities Money Market Deposits $ 2,750,000 <1 Year $ 3,000,000 Savings Accounts $ 4,000,000 1 to 2 Years $ 4,000,000 CDs > 2 years $ 6,000,000 Variables-rate $ 7,500,000 Residential Mortgages < 1 Year $ 11,000,000 Variables-rate $ 3,500,000 1 to 2 Years $ 2,500,000 Fixed-rate $ 6,500,000 > 2 years $ 1,250,000 Commercial Loans Fed Funds $ 2,500,000 > 1 Year $ 750,000 Borrowings 1 to 2 Years $ 9,250,000 < 1 Year $ 6,000,000…
Bank B, on the other hand, makes a $105 loan at 7%, with $100 in deposits at 5% and only $10 in equity. Bank B purchases the rest of Assets as G-Bond at 5% interest rate. Bank B Loan 7% $105 G-Bond 5% ? Deposits 5% $100 Equity $10 Total Assets $? Total Equity and Deposit $110 Compute ROA of Bank B, 5.62% 7.77% 2.36% 1.45% 3.88% 8.85% 4.56% 6.12%
A company has borrowed £776,600 from a bank. The loan is to be repaid by level instalments, payable annually in arrears for 18 years from the date the loan is made. The annual repayments are calculated at an effective rate of interest of 6.7% per annum for the first 8 years and 4. 6% per annum thereafter. Calculate, to 2 decimal places, the following: (i) The level annual payments of interest and capital: (ii) The total amount of capital repaid to the bank immediately after the 12th payment: Hint: This is the opposite of the loan outstanding. (iii) The total amount of interest paid to the bank during the first 12 years: Hint: Considering all of the payments made during the first 12 years.
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Calculate market value of debt use excel please
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Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company’s general borrowings for the year: £m 10% loan repayable 20X9 250 8% loan repayable 20Y2 750 Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £45 million on that date to fund construction. On 1 September 20X8 an additional £60 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8. Select one: a. £5,000,000 b. £4,250,000 c. £5,418,750 d. £850,000 e. £8,925,000 f. £3,056,250
48

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