What is the return on equity for 2017?

On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60. [We are assuming that the 2020 coupon has just been redeemed.]

• Initially, the bond was sold for the premium price of $1,025.

• On October 15, 2020, this bond was selling for only $975.

• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.

• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.

Question: What was the nominal yield on this bond on October 15, 2016?  [To 1 decimal place.]

On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60. [We are assuming that the 2020 coupon has just been redeemed.]

• Initially, the bond was sold for the premium price of $1,025.

• On October 15, 2020, this bond was selling for only $975.

• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.

• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.

Question-  What was the risk premium for this bond on October 15, 2016? [To 3 decimal places.]

On January 1, 2015, the American Company borrowed 500,000 euros when the euro was worth $2. Information about this loan is as follows:                                                                                                  

Term of loan is 3 years                                                                              

Interest payment dates   - July 1 and January 1 of each year                                                                                       

Interest rate is 10%                                                                                    

On July 1, 2015, the Euro is worth $2.11                                                                                                                          

On December 31, 2015 (January 1, 2016), the euro is worth $2.09                                              

On July 1, 2016, the Euro is worth $2.05                                                                                                                          

On December 31, 2016 (January 1, 2017) the Euro is worth $1.99                                               

On July 1, 2017, the Euro is worth $1.98                                                                                                                          

On December 31, 2017 (January 1, 2018) the Euro is worth $2.01

REQUIRED: Make all necessary journal entries American Company makes connected with this loan [begin with getting the cash and signing the note]

Refer to the Baseball 2016 data, which report information on the 30 Major League Baseball teams for the 2016 season. Refer to the variable team salary. Prepare a report on the team salaries. Be sure to answer the following questions in your report. Around what values do the data tend to cluster? Specifically what is the mean team salary? What is the median team salary? Is one measure more representative of the typical team salary than the others? What is the range of the team salaries? What is the standard deviation? About 95% of the salaries are between what two values? Refer to the information on the average salary for each year. In 2000 the average player salary was $1.99 million. By 2016 the average player salary had increased to $4.40 million. What was the rate of increase over the period?

(ii) Broadoak acquired a 12-year lease en a property on 1 October 2016 at a cost of S240,000. The company policy is to revalue its properties to their market values at the end of each year. Accumulated amortization is eliminated and the property is restated to the revalued amount. Annual amortization is calculated on the carrying values at the beginning of the year, The market values, of the property on 30 September 2017 and 2018 were $231,000 and $175,000 respectively, The existing balance on the revaluation reserve at 1 October 2016 was S50,000. This related to some non-depreciable land whose value had not changed significantly since 1 October 2016.

Required: Prepare extracts of the Fiancial statements of of Broadoak. (including the movement on the revaluation reserve) for the years to 30 September 2017 and 2018 in respect of the leasehold property

(ii) Broadoak acquired a 12-year lease en a property on 1 October 2016 at a cost of S240,000. The company policy is to revalue its properties to their market values at the end of each year. Accumulated amortization is eliminated and the property is restated to the revalued amount. Annual amortization is calculated on the carrying values at the beginning of the year, The market values, of the property on 30 September 2017 and 2018 were $231,000 and $175,000 respectively, The existing balance on the revaluation reserve at 1 October 2016 was S50,000. This related to some non-depreciable land whose value had not changed significantly since 1 October 2016.

Required: Prepare extracts of the Fiancial statements of of Broadoak. (including the movement on the revaluation reserve) for the years to 30 September 2017 and 2018 in respect of the leasehold property

Dollar-Value LIFO

Belstock Company manufactures one product. On December 31, 2015, Belstock adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $200,000. Inventory data for succeeding years are as follows:

Required:

Compute the ending inventory using the dollar-value LIFO method for 2016, 2017, and 2018. Do not round your intermediate calculations. If required, round your answers to the nearest dollar.

Suppose that Nissan produced 1,000 new XTerra sport utility vehicles at its factory in Tennessee in December 2015. In January 2016, these vehicles were transported to dealers and were later sold to customers. Which of the following statements are true?

• A. Because the vehicles were produced in 2015, their value should be included in real GDP for 2015.

• B. Because the vehicles were not purchased until 2016, their value should not be included in real GDP for 2015.

• C. Under the expenditure approach, these vehicles should be included as expenditure on investment in 2015.

• D. Under the expenditure approach, these vehicles should be included in net exports for 2016 because Nissan is headquartered in Japan.

• E. Both (a) and (c) are true.

• F. Both (b) and (d) are true

• G. None of the above statements are true.