Question: Please answer F->L only Question Three The Nikeem Corporation has invested in plant and equipment worth $21m of which only one quarter is paid off.
Please answer F->L only

Question Three The Nikeem Corporation has invested in plant and equipment worth $21m of which only one quarter is paid off. Hence, there is still an ongoing loan to service for the plant and equipment at an interest rate of 4.25%. The company now also wishes to expand its operations and borrow a further $550k also at a nominal interest rate of 4.25%. a) What is the total asset value of the corporation? [1 mark] b) State the corporation's non-current liability. [2 marks] c) Calculate the corporation's current liability. [1 mark] d) What is the equity of the Nikeem Corporation? [1 mark] e) During the first year the corporation has paid a total of $25k to service the $550k loan. How much of the $550k loan has been amortised? [3 marks] . The following information has been taken from the Nikeem Corporation's Profit & Loss statement for the 2020/2021 financial year: Total Revenue: $600,000 Cost of Goods Sold: $145,000 Total Operating Expenses: $17,000 . Depreciation and Amortisation: $21,000 Total Interest Paid: $60,000 Income from other investments: $105,000 (Note: tax has already been paid) Income Tax Paid: $26k . . Calculate the following for the Nikeem Corporation: f) The Gross Margin [2 marks] g) The EBITDA [2 marks] h) The corporation's Earnings before Interest and Tax [2 marks] i) The corporation's Net Profit [5 marks] j) In a few words in general terms explain the relationship between Amortisation & Depreciation with respect to a corporation's cashflow statement. [2 marks] k) Briefly explain the difference between Accounts Receivable and Accounts Payable [2 marks] 1) The company is thinking about raising the funds by issuing bonds to the market. List three key factors that affect the value of a Bond that the investor needs to be aware of. [2 marks]
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
