Williams Co. recently issued bonds with a face value of 10,000,000 and a coupon rate of 3% for 8 years. The current market rate of interest is 4% and the bonds pay interest semiannually.

1) Please compute the issuing price of the bond, using a financial calculator or Excel. [Note: you don't have to show me the Present Value (PV) of the principle or PV of the interest payment. All I am asking for is a number for the PV of the bonds or cash flows]

2) Please write down the journal entries reflecting the premium or discounts of this bond issuance. [Hint: How much is the premium or discount on the bond issue date?]

3)  Please write down the journal entries reflecting this amortization of the premium or discount at the end of the first year (2 payments) [Hint: How much is the amortized premium or discount at the end of the first year (2 payments)? ].

Operating Lease (Calculator set on BEG). - On January 1st, 2019 Asphalt Paving Co leased a road-paving machine from ABC Equipment for 4 years. Payments under the lease were $187,635.68, with the first due upon signing of the lease on January 1, 2019, and the remainder due on December 31, 2019, and the following 2 years. The equipment had a sales price of $1,000,000 and an estimated useful life of 6 years. The interest rate implicit in the lease is 5%.

a. Calculate the present value of future lease payments

b. How much lease expense would be reported by the Lessee under this Lease in each year?

c. Prepare the first three lines of the amortization table that would be used by both the lessee and the lessor

d. Record all journal entries related to this lease for Asphalt Paving for 2019 and 2020

Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,713,594. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of an amortization table using the straight-line method 5. Prepare the journal entries to record the first two interest payments.

Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,592,334.

Required:

1. Prepare the January 1, 2017, journal entry to record the bonds’ issuance.
2(a) For each semiannual period, complete the table below to calculate the cash payment.
2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization.
2(c) For each semiannual period, complete the table below to calculate the bond interest expense.
3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
4. Prepare the first two years of an amortization table using the straight-line method.
5. Prepare the journal entries to record the first two interest payments.

Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,835,994. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of an amortization table using the straight-line method 5. Prepare the journal entries to record the first two interest payments.

Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,641,812. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of an amortization table using the straight-line method. 5. Prepare the journal entries to record the first two interest payments.

Hillside issues $1,300,000 of 7%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,123,346.

Required:

1. Prepare the January 1, 2017, journal entry to record the bonds’ issuance.
2(a) For each semiannual period, complete the table below to calculate the cash payment.
2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization.
2(c) For each semiannual period, complete the table below to calculate the bond interest expense.
3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
4. Prepare the first two years of an amortization table using the straight-line method.
5. Prepare the journal entries to record the first two interest payments.

Dinklage Corp. has 10.1 million shares of common stock outstanding. The current share price is $53, and the book value per share is $4. The company also has two bond issues outstanding. The first bond issue has a face value of $83 million, has a 7 percent coupon, and sells for 91 percent of par. The second issue has a face value of $60.6 million, has a 7 percent coupon, and sells for 93.9 percent of par. The first issue matures in 9 years, the second in 7 years. What is the company's capital structure weight of equity on a book value basis? What is the company's capital structure weight of debt on a book value basis? What is the company's capital structure weight of equity on a market value basis? What is the company's capital structure weight of debt on a market value basis?

Ten Pins Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $52, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $69.8 million and a coupon rate of 6.9 percent and sells for 108.4 percent of par. The second issue has a face value of $59.8 million and a coupon rate of 7.4 percent and sells for 108.7 percent of par. The first issue matures in 7 years, the second in 28 years.

The company’s stock has a beta of 1.1. The risk-free rate is 3 percent, and the market risk premium is 6.9 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 34 percent. What is the company’s WACC?