Question
I just need help with part C. of this question. Note Valuation. The Hastings Company is a multinational manufacturer of electrical equipment and components. Selected
I just need help with part C. of this question.
Note Valuation. The Hastings Company is a multinational manufacturer of electrical equipment and components. Selected financial information is as follows:
Consolidated Statements of Income | |||
---|---|---|---|
For Period Ended (In millions) | 2020 | 2019 | 2018 |
Net sales | $6,777.40 | $6,718.32 | $5,473.30 |
Operating income | 366.24 | 762.58 | 755.79 |
Interest expense | (253.00) | (178.71) | (128.45) |
Other income (expense), net | (6.80) | 25.06 | 2.17 |
Noncontrolling interests | (20.10) | (27.51) | (20.37) |
Earnings before income taxes | 86.34 | 581.42 | 609.14 |
(Benefit) provision for income taxes | (2.03) | 199.08 | 214.97 |
Earnings from continuing operations | 88.37 | 382.34 | 394.17 |
Discontinued operations (net of tax) | 0.00 | 86.24 | 19.60 |
Net earnings | $88.37 | $468.58 | $413.77 |
Abbreviated Consolidated Balance Sheet | ||
---|---|---|
(in millions) | 2020 | 2019 |
Total assets | $7,744.59 | $7,736.82 |
Long-term debt | 2,030.49 | 1,078.28 |
Shareholders' equity | 2,741.62 | 2,436.84 |
Total liabilities and stockholders' equity | $7,744.59 | $7,736.82 |
Note 8-Long-Term Debt and Credit Facilities | ||
---|---|---|
(in millions) | 2020 | 2019 |
5.75% Notes Due 2022 | $490.00 | $- |
Total long-term debt | $2,030.49 | $1,078.28 |
Required 1. The company reported that on February 1, 2020, it issued $490 million of 5.75% secured notes due February 1, 2022. a. Were the notes sold at a discount, a premium, or at par value? Answer 1 DiscountPremiumPar
b. How much interest expense did the company record on August 1, 2020, assuming semiannual compounding? $Answer 2
Note: Round to three decimal places. Use rounded amount in any further calculations. c. How much would the company have raised through the sale of the notes if the market rate of interest had been 6% per year? $Answer 3
million. Note: Use Excel and round to three decimal places.
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