Balance Sheet of YDL as of 31 December 2019

Assets Cash at bank $ 700,000

Accounts receivable $ 550,000

Inventory $ 1,700,000

Marketable securities $ 6,670,000

Plant, machinery and equipment $ 150,500,000

Intangible assets $ 40,000,000

Land and building $ 30,000,000

Total $ 230,120,000

Liabilities Accounts payable $ 300,000

Bank overdraft $ 670,000

Commercial bills (due 30th Jun 2020) $ 3,000,000

3.75% Coupon bonds (due Dec 2029 issued @$100 each) $ 150,000,000

Shareholders' Fund Common stock 33,500,000 @ $2.209 each $ 74,000,000

Retain earnings $ 2,150,000

Liabilities + Shareholders' Fund $ 230,120,000 Additional Information: The applicable interest rate on bank overdraft is 5.5% per annum and has monthly compounding.

The commercial bills are currently yielding 4.5% per annum with quarterly compounding. They will mature on 30th June 2020 however, will be replaced by newer issues on that date.

The bonds are currently priced at $102 each and pay coupons semi-annually on 30th June, and 31st December.

The coupon payment due to be paid on 31th December 2019 has been paid.

The applicable company tax rate is 30% and the proportion of tax collected from the company and is claimed by shareholders is 0.50.

The current yield on Australian Government 10-year bonds is 1.40% per annum.

The expected market return including franking premium is 9.25% per annum.

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