Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company puts on 01.01.x0 a bond loan with a nominal value of 100,000,000. The bond pays no interest (zero coupon) until maturity which is

image text in transcribed

A company puts on 01.01.x0 a bond loan with a nominal value of 100,000,000. The bond pays no interest (zero coupon) until maturity which is 31.12.x9. The market interest rate for the entire period is 10% and the company receives NOK 38,554,329 at the time of drawing (01.01.x0). What is the book value of the loan as of 31.12.x1? Select one option a. None of these options b. NOK 42,409,761 c. NOK 38,554,329 d./NOK 46,650,738 A company has a book value of equity per 01.01.x1 of NOK 500,000, as of 31.12.x1 this was increased to NOK 750,000. Interest-bearing debt as of 01.01.x1 was capitalized at NOK 2,500,000, but as of 31.12.x1 it was capitalized to 3,750,000. the company had no other obligations during the period. The annual result for 20x1 was probably 50,000 while the net financial cost was NOK 25,000. What was the return on equity for 20x1 when an average capital concept is used as the basis for the calculation? Select one option a. 8% b. 12% c. 2% d. None of these options

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Labour Finance And Inequality

Authors: Suzanne J. Konzelmann, Simon Deakin, Marc Fovargue-Davies, Frank Wilkinson

1st Edition

1138919721, 978-1138919723

More Books

Students also viewed these Finance questions

Question

What must a creditor do to become a secured party?

Answered: 1 week ago

Question

When should the last word in a title be capitalized?

Answered: 1 week ago