Raj Ltd. issued 10% debenture of Rs100 each for Rs.1,00,000 at a discount of 5%. The floatation cost is 8% of the face value. The company is agreed to repay the debentures at par after 8 years. The tax rate is 30%. Find out the cost of debt.

Q: The company has a 10% interest bearing, promissory note of 50,000, payable after 5 years. Sales…

A: The financial leverage is the ratio that helps in measuring the dependency of the entity on debt…

Q: On January 1, a company agrees to pay $29,000 in ten years. If the annual interest rate is 7%,…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: XYZ funds purchased a bank bill (face value=1 million) on 10th June 2020. The bill will mature in 60…

A: Investment means engaging your funds into income generation for the coming time. Bank bill is issued…

Q: (d) At 30 June 2002 a company had Klm 8% loan notes in issue, inter yearly on 30 June and 31…

A: Statement of comprehensive income The statement of comprehensive income includes revenue and…

Q: favorable financ

A: A sale is an agreement between two parties related to the price, delivery of product or services…

Q: Siyar Ltd has issued 6% debentures worth 200,000 OMR having face value of OMR 100 each at a discount…

A: Solution: Bond issue price = OMR 200,000 * 90% = OMR 180,000 Flotation cost payable = OMR 5,000

Q: Two banks pay simple interest on short-term deposits. Bank A pays 5% p.a. over 3 years, and Bank B…

A: Simple interest is quite simple and only there is interest on the pricipal amount and there is no…

Q: A Company sold 80,000 sold reversible shirts under a new sales promotional program during the year.…

A: The estimated expenses are the expenses that are based on current sales but are not sure to be…

Q: NYJ, Inc. borrowed $500,000 on November 1, 20X1, and signed a nine-month note bearing interest at…

A: The notes payable require the borrower company to pay interest expense. The interest expense is…

Q: Automotive Excellence Inc. borrowed $16,000.00 on April 16 with an interest rate of 4.9% per annum.…

A: An interest rate is the cost of borrowing money or the return on investment for lending money,…

Q: Gingerbread Corp was issued a $250,000 loan at 8% with a five year maturity date. The partial…

A: Given: Loan = $250,000 Interest rate =8% Years = 5

Q: Automotive Excellence Inc. borrowed $17,000.00 on March 4 with an interest rate of 8.6% per annum.…

A: The objective of the question is to calculate the final payment made by Automotive Excellence Inc.…

Q: Dayannara Bank loaned P5,000,000 to Dama Company on January 1, 2007. The terms of the loan require…

A: In order to determine the impairment loss, the present value of the loan is required to be…

Q: 90-day government bill was bought by an investor for a price of K95 per K100 nom- inal. After 30…

A: Annual effective  rate of return   = (selling price/purchase price)^[1/n] - 1

Q: Notional amount = $1 million, and payments are made semiannually. The corporation will pay a…

A: Given: Notional amount = $1 million or $1,000,000 Floating rate = 3% Fixed rate = 3.5%…

Q: December 1, 20X5 - Accounts receivable of P175,000 are assigned.  December 11, 20X5 - A sales…

A: Accounts Receivable - Assigned The purpose of assigned the accounts receivable to acquire loan to…

Q: Omega Chemicals Ltd. took a $440,000 two-year note receivable from a customer in connection with a…

A: Price of the bond = c × F × (1 − (1 + r)-t)/r+F(1 + r)t C=Interest Rate F= Face Value r=Market…

Q: Company Z borrows EUR 1 million from the Bank at an annual interest rate of 3,5% for one year. The…

A: Tax shield Interest on the borrowed amount is a tax deductible item. So, it provides savings in the…

Q: Consider the following values. NOIn+1: $2.8 million. Cap rate: 7.5%. Brokerage commission: 3%.…

A: Understanding the Concepts:Cap Rate: This is a fundamental real estate metric. It represents the…

Q: ABC Corp receives a 4 year P400,000 non interest bearing note that requires 4 equal annual…

A: Non Interest bearing note is a type of note which has no stated interest.

Q: On June 1, 20x4, a tract of land that originally cost P 800,000 was sold to SHE Company. The company…

A: Introduction The compensation received by an entity for borrowing its cash or permitting another…

Q: Don Ltd bought a $100 000 commercial bill in the secondary market with 100 days to maturity. It was…

A: A commercial bill is an unsecured debt issued by a corporation. The question says that, The value of…

Q: A company factored $100,000 of accounts receivables. The factor discounted the receivables for 9%…

A: The Factoring accounts receivable is an process where the company sells its accounts receivable to a…

Q: On January 1, a company agrees to pay $26,000 in seven years. If the annual interest rate is 6%,…

A: Present value means the present value of the money which is to be payable or receivable in the…

Q: On January 1, Windsors Inc. sold used equipment with a cost of $15,000 and a carrying amount of…

A: Notes receivable are defined as the instruments on which a written promise is made to disburse a…

Q: At 30 June 2002 a company had Klm 8% loan notes in issue, interest being paid half- yearly on 30…

A:

Q: a. Compute the amount of Interest that Colson will pay on the line of credit for the first four…

A: The line of credit allows the borrowers to withdraw money at any time which has a preset borrowing…

Q: Engr Dalay is required to pay 66500 pesos at the end of 15 days of 68000 pesos at the end of 60…

A: While calculating the interest rate on treasury bills, only 360 days in a years shall be taken.…

Q: ← Automotive Excellence Inc. borrowed $19,000.00 on April 8 with an interest rate of 5.9% per annum…

A: Amount due is amount of loan plus amount of interest accumulated on that date.Interest on loan=loan…

Q: third year. Purchased a $176,500 machine on January 1 of this year for $35,300 cash. A five-year…

A: 1)   Interest =  $7300 Repayment at the end  =$117600 Number of years  =8 years   year      Cash…

Q: Company C bought a piece of equipment on January 1, 20X1 by signing the following note payable.

A: Income statement is one of the financial statement which is prepared to know the financial…

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: Payment should be credit by cash. Interest expense and LT notes payable is debited.

Q: Chase up is public listed company in Pakistan Stock exchange. A few years back chase up started to…

A: A.                                               Calculation of total finance costs to be…

Q: A company is considering to start a new product line which requires the installation of new machines…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…

A: Solution :  Calculate the PV of the Ordinary Annuity: Payment $10,000 n 5 i   7% Present…

Q: Required: 1. In transaction (a), determine the present value of the debt. Note: Round your…

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: Sheridan Company receives a three-year, $9,200, zero-interest-bearing note, and the related present…

A: When a bond is issued or purchased below its face, the bond is said to be issued or purchased at a…

Q: A company has an existing bank loan of Kshs.5,000,000 with an interest rate of 13%. What is the cost…

A: The cost of loan shall be taken after tax because interest expenses are allowed for deduction for…

Q: ALDA Investments makes a sale of equipment for a value of L 250,000.00 where the cancellation is…

A: a) Let the first payment = P Payment growth rate = 15% r = 18% per annum = 1.5% per month

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.