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DEVCON INDUSTRIES LIMITED Income Statement For the year ending Dec. 31, 2018 and 2019 2018 2019 $000's $000's Sales 900000 1125000 Cost of Goods Sold
DEVCON INDUSTRIES LIMITED | |||||||
Income Statement | |||||||
For the year ending Dec. 31, 2018 and 2019 | |||||||
2018 | 2019 | ||||||
$000's | $000's | ||||||
Sales | 900000 | 1125000 | |||||
Cost of Goods Sold | 300000 | 306600 | |||||
Gross Profit | 600000 | 818400 | |||||
Selling and Administrative Expenses | 150000 | 156000 | |||||
Depreciation Expense | 54000 | 57000 | |||||
Advertising Expenses | 18000 | 21000 | |||||
Earning Before Interest and Taxes | 378000 | 584400 | |||||
Interest Expense | 3000 | 3000 | |||||
Taxable Income | 375000 | 581400 | |||||
Taxation (35%) | 131250 | 203490 | |||||
Net Income | 243750 | 377910 | |||||
Dividends (40%) | 97500 | 151164 | |||||
Addition to Retained Earnings | 146250 | 226746 | |||||
Additional Information | |||||||
Share Price | 21 | 27.3 | |||||
Ordinary Shares Outstanding | 120000000 | 144000000 |
DEVCON INDUSTRIES LIMITED | |||||||||
Statement of Financial Position | |||||||||
As at Dec. 31, 2018 and 2019 | |||||||||
ASSETS | 2018 | 2019 | LIABILITIES & EQUITY | 2018 | 2019 | ||||
Current Assets | $000's | $000's | Current Liabilities | $000's | $000's | ||||
Inventories | 264000 | 276000 | Accounts Payables | 138000 | 114000 | ||||
Accounts Receivables | 294000 | 330000 | Notes Payables | 150900 | 132654 | ||||
Cash and Equivalents | 210900 | 270000 | 288900 | 246654 | |||||
768900 | 876000 | Non-current Liabilities | 120000 | 90000 | |||||
Total Liabilities | 408900 | 336654 | |||||||
Net Fixed Assets | 630600 | 690000 | Equity | ||||||
Common Stock | 264000 | 276000 | |||||||
Retained Earnings | 726600 | 953346 | |||||||
Total Equity | 990600 | 1566000 | |||||||
Total Assets | 1399500 | 1566000 | Total Liabilities & Equity | 1399500 | 1566000 |
Question 3
- DEVCON Industries is considering issuing a $20,000,000 15-year bond in early 2022, with an annual coupon rate of 4%, and semiannual interest payments.
Required:
If the company anticipates that the yield to maturity on the date of issue is expected to be 4.5%, given the companys credit ratings and current market conditions, how much would an investor be willing to pay for $1,000 face value of this bond?
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