Sunrise Manufacturing, Inc. Sunrise Manufacturing, Inc., a U.S. multinational company, has the following debt components in its consolidated capital section, Sunrise's shareholders' equity is $50,000,000 and its finance staff estimates their cost of equity to be 17.5%.
Current exchange rates are also listed in the table. Income taxes are 39% around the world after allowing for credits. Calculate Sunrise's weighted average cost of capital. Are any assumptions implicit in your calculation?
What is Sunrise's weighted average cost of capital?
Data Table:
|
Assumption |
Value |
|
|
Tax rate |
39% |
|
|
25-year US$ bonds |
$20 comma 000 comma 00020,000,000 |
|
|
5-year US$ bonds |
$8,000,000 |
|
|
10-year eurobonds (euros) |
euro€8,000,000 |
|
|
20-year yen bonds (yen) |
¥750,000,000 |
|
|
Before-tax cost of 25-year US$ bonds |
8.0% |
|
|
Before-tax cost of 5-year US$ bonds |
5.0% |
|
|
Before-tax cost of 10-year eurobonds |
6.0% |
|
|
Before-tax cost of 20-year yen bonds |
4.0% |
|
| Spot rate
($/euro€) |
1.2200 |
|
| Spot rate
($/pound£) |
1.9400 |
|
| Spot rate
(yen¥/$) |
105.00 |
In: Finance
Gro-right manufactures and sells greenhouses to large commercial farms. The 2020 Budget for the company shows the following information:
|
Selling Price per unit |
$15,000 |
|
Variable manufacturing Costs per unit |
$7,500 |
|
Variable Selling Costs per unit |
$1,500 |
|
Annual Fixed Costs |
$12,000,000 |
|
Desired Net Income |
$1,020,000 |
|
Income Tax Rate |
15% |
Required:
In: Finance
| On March 1st 2017 American Company purchased a one-million Euro CD when one Euro = one dollar. | ||||||||
| This 3 year 12% CD pays interest semi-annually to American Company on March 1st and September 1st. | ||||||||
| Additional information is as follows: | ||||||||
| 3/1/2017 | 1 Euro worth $1.00 | |||||||
| 9/1/2017 | 1 Euro worth $1.01 | |||||||
| 12/31/2017 | 1 Euro worth $1.04 | |||||||
| 3/1/2018 | 1 Euro worth $1.02 | |||||||
| 9/1/2018 | 1 Euro worth $0.99 | |||||||
| 12/31/2018 | 1 Euro worth $0.95 | |||||||
| 3/31/2019 | 1 Euro worth $0.90 | |||||||
| 9/1/2019 | 1 Euro worth $0.96 | |||||||
| 12/31/2019 | 1 Euro worth $0.98 | |||||||
| 3/1/2020 | 1 Euro worth $1.03 | |||||||
| Required: make all the necessary journal entries for American Company connected with purchase of the CD for 2017 through 2020 | ||||||||
| hint: don't forget adjusting entries at the end of each year. | ||||||||
In: Accounting
Table C (below) shows the schedules for marginal social cost, marginal private benefit, and marginal social benefit of a university education for each student.
Table C
|
Students (millions) |
MSC (per student) |
MB (per student) |
MSB (per student) |
|
1 |
$ 3,000 |
$6,000 |
$9,000 |
|
2 |
$ 3,000 |
$5,000 |
$7,500 |
|
3 |
$ 3,000 |
$4,000 |
$6,000 |
|
4 |
$ 3,000 |
$3,000 |
$4,500 |
|
5 |
$ 3,000 |
$2,000 |
$3,000 |
|
6 |
$ 3,000 |
$1,000 |
$1,500 |
In: Economics
Course:Business Law
On 15 September 2020, Tammy purchased from CC two tickets to the Ed Shearer concert in Brisbane on 07 January 2021. The reality is that as at 15 September 2020, due to the current COVID – 19 pandemic, it was highly unlikely that the Ed Shearer concert would proceed.
Jane purchased 3 tickets to the same concert as Tammy however unlike Tammy, Jane purchased her tickets in January of 2020, at a time when there was every
expectation that the Ed Shearer concert would proceed as expected as at that time, the future impact of the pandemic had not been fully realised.
Has CC acted in breach of the ACL by selling Tammy and/or Jane
tickets to the Ed Shearer concert?
Explain your answer
In: Accounting
The prevalence of obesity remains high and affects Americans of all ages.
Review the following resource:
· United States Department of Health and Human Services (2017). 2020 Topics and objectives: Nutrition and weight status (Links to an external site.)Links to an external site.. Retrieved from: https://www.healthypeople.gov/2020/topics-objectives/topic/nutrition-and-weight-status
Initial Discussion Post:
· Identify two (2) contributing factors to childhood obesity.
· List three (3) ways the nurse could intervene to promote the nutrition and weight status objectives for Healthy People 2020.
· Discuss why these objectives are important for individuals or communities.
· Identify two (2) contributing factors to adult obesity.
Note: Please include reference
In: Nursing
Eric’s Excavations has a financial year which ends on the 30th June. Eric purchased a truck for $200,000 on 1 July 2019, and estimates that the asset will have a residual value of $50,000 and a useful life of 5 years. The truck was sold on 31 December 2020 for $160,000. Required: Calculate the annual depreciation on the truck for the year ended 30th June 2020 and prepare the adjusting journal entry for depreciation . Show an excerpt from the Balance Sheet as at 30th June 2020 of the Non-current assets .
Prepare the journal entries to account for depreciation for the year ended 30 June 2021, calculate the gain/(loss) on sale of truck and make the journal entries to dispose of the truck .
Calculations of gain/(loss)
In: Accounting
In a study of academic procrastination, the authors of a paper reported that for a sample of 411 undergraduate students at a midsize public university preparing for a final exam in an introductory psychology course, the mean time spent studying for the exam was 7.64 hours and the standard deviation of study times was 3.60 hours. For purposes of this exercise, assume that it is reasonable to regard this sample as representative of students taking introductory psychology at this university.
(a) Construct a 95% confidence interval to estimate μ,
the mean time spent studying for the final exam for students taking
introductory psychology at this university. (Round your answers to
three decimal places.)
( , )
(b) The paper also gave the following sample statistics for the
percentage of study time that occurred in the 24 hours prior to the
exam.
n = 411 x = 43.28 s = 21.66
Construct a 90% confidence interval for the mean percentage of
study time that occurs in the 24 hours prior to the exam. (Round
your answers to three decimal places.)
( , )
Interpret the interval.
*We are confident that 90% of the mean percent of study time that occurs in the 24 hours prior to the exam for all students taking introductory psychology at this university is within this interval.
*We are 90% confident that the mean percent of study time for all students taking introductory psychology is within this interval.
*We are confident that the mean percent of study time that occurs in the 24 hours prior to the exam for all students taking introductory psychology at this university is within this interval at least 90% of the time.
*We are 90% confident that the mean percent of study time that occurs in the 24 hours prior to the exam for all students taking introductory psychology at this university is within this interval.
In: Statistics and Probability
Sage Company sells 8% bonds having a maturity value of $2,620,000 for $2,421,360. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.
Set up a schedule of interest expense and discount amortization under the effective-interest method.
In: Accounting
Garza Company enters into a 5 year capital lease as the lease on Jan 1st 2020. The fair value of the asset is $150,000, and the annual lease payments are $33,594 payable each January 1st. Garza uses the straight line method for depreciation. Make the journal entry for the first 2 years.
In: Accounting