QUESTION ASSETS Cash Accounts Receivable Inventory Property, plant & equipment Total Assets Notes 1. 2. 3. 4.
Fantastic news! We've Found the answer you've been seeking!
Question:
QUESTION
Transcribed Image Text:
ASSETS Cash Accounts Receivable Inventory Property, plant & equipment Total Assets Notes 1. 2. 3. 4. Hawthorn Manufacturing Company Ltd Balance Sheet as at 31/12/19 6. 150 200 640 1.120 2.110 LIABILITIES Accounts payable Bank loan (interest only) Mortgage Loan Corporate bonds The market risk premium is 10%. Total liabilities SHAREHOLDERS' EQUITY Ordinary shares Preference Shares Notes. 123 45 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 5. The preference shares have a par value of $1 each and are shown on the Balance Sheet at their par value. They pay a constant dividend of $000 and they are currently trading for $1,02. 130 200 500 310 1.140 The interest rate on the bank loan is 8,2% p.a. The interest rate on the mortgage loan is 5,2% p.a. The corporate bonds have a credit rating of AAA and have 2 years to maturity. They make semi-annual coupon payments at a coupon rate of 5% p.a. 450 230 290 970 2.110 The ordinary shares are shown on the balance sheet at their book value of $1 per share. They have a beta of 1,9. They have just paid a dividend of $000. The dividend is expected to grow at a rate of 9% p.a. for the next 3 years, and after that it will grow at a constant rate of 3% p.a. in perpetuity. ASSETS Cash Accounts Receivable Inventory Property, plant & equipment Total Assets Notes 1. 2. 3. 4. Hawthorn Manufacturing Company Ltd Balance Sheet as at 31/12/19 6. 150 200 640 1.120 2.110 LIABILITIES Accounts payable Bank loan (interest only) Mortgage Loan Corporate bonds The market risk premium is 10%. Total liabilities SHAREHOLDERS' EQUITY Ordinary shares Preference Shares Notes. 123 45 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 5. The preference shares have a par value of $1 each and are shown on the Balance Sheet at their par value. They pay a constant dividend of $000 and they are currently trading for $1,02. 130 200 500 310 1.140 The interest rate on the bank loan is 8,2% p.a. The interest rate on the mortgage loan is 5,2% p.a. The corporate bonds have a credit rating of AAA and have 2 years to maturity. They make semi-annual coupon payments at a coupon rate of 5% p.a. 450 230 290 970 2.110 The ordinary shares are shown on the balance sheet at their book value of $1 per share. They have a beta of 1,9. They have just paid a dividend of $000. The dividend is expected to grow at a rate of 9% p.a. for the next 3 years, and after that it will grow at a constant rate of 3% p.a. in perpetuity.
Expert Answer:
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Posted Date:
Students also viewed these general management questions
-
A new $300,000 machine is expected to have a 5-year life and a terminal value of zero. It can produce 40,000 units a year at a variable cost of $4 per unit. The variable cost is $6.50 per unit with...
-
A new project is expected to have an 8-year economic life. The project will have an initial cost of $100,000. Installation and shipping charges for the equipment are estimated at $10,000. The...
-
4. Testing Services Inc. is expected to have earnings of $6 per share this com- ing year. It expects earning will grow at 15% for three years. The company projects that from the third year (time 3)...
-
During the year ended 30 June 20X5, Gem Stone Ltd acquired two areas of interest Site A and Site B. The exploration and evaluation activities at Site A amounted to $64454401. The costs relate to the...
-
Which of the following statements about the euro is false? I. The euro is the sole currency of the Eurozone countries. II. The countries in the Eurozone have been limited to the ones that are already...
-
A quality control program that depends on multiple team members for removing waste and diminishing defects within products is ________. A. Kaizen B. Total quality management C. Lean Six Sigma D. A...
-
The President of the United States is elected based on the electoral college. Each state in the United States has a specified number of electoral votes. Typically, the candidate that wins the popular...
-
Jennelle and Paula are equal partners in the J&P Manufacturing Partnership. The partnership will form J&P Corporation by exchanging the assets and liabilities of the J&P Manufacturing Partnership for...
-
When a foreign corporation claims the complete termination rule in order to avoid the adverse branch profits tax consequences, several regulatory requirements must be established and one of those...
-
SP 5 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on...
-
Imagine you are a consultant for a company looking to enter a new international market. What factors would you consider in developing a market entry strategy, and how would you recommend they...
-
When we are solving thin film interference problems, we compare the wavelength of the incident light to the thickness of the film. Which value should we use for the wavelength? O The value of the...
-
In Mr. Martin's science class, brine shrimp are hatching in a container of 0.255 liters of saltwater. How many milliliters of salt water are in the container? (1 liter= 1000 militers) A) 000255 B)...
-
Find the correct output: stack.push(100); stack.push(200); stack.push(500); stack.pop(); stack.push(500); stack.peek(); stack.push(300); stack.printStack();
-
If an LLC is doing business in a state other than the state it was formed in , what is it called?
-
What is one key advantage of linking business rule assumptions to a financial model in Excel? it reduces the need for annual growth rate assumptions. It allows for easy updating of assumptions in the...
-
Binary merge The binary merge operation is a very common operation in computer science, where two individual sorted sequences are merged into one larger sorted sequence. Merging is the backbone of...
-
Determine the optimal use of Applichem's plant capacity using the Solver in Excel.
-
Identify the following planned costs as (a) variable costs, (b) fixed costs, (c) mixed costs, or (d) step costs. For variable costs and mixed costs, indicate the most likely cost driver. 1. Public...
-
Why is the cost-allocation method used by an organization an important part of its cost accounting system?
-
Refer to the Lopez Plastics Company example on pages 136140 and to Exhibit 4-7. The following list gives various resources used by Lopez Plastics Company. Use the letters D, I and U to indicate how...
-
TSMC Corporation is considering selling one of its old wafer fabrication machines. The machine, purchased for \($3,000,000\) 5 years ago, had an expected life of 10 years and an expected salvage...
-
Holland at Home is considering introducing a variation of its current breakfast cereal, Zonnatura Regular Muesli Rich. The new cereal will be similar to the old with the exception that it will...
-
Decathlon Stores is expanding operations with the introduction of a new distribution center. Not only will sales increase but investment in inventory will decline due to increased efficiencies in...
Study smarter with the SolutionInn App