Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2017 disclosed the following: 8.20 notes
The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2017 disclosed the following: 8.20 notes due 2010 8.70 notes due 2023 B.954 notes due 2032 8.5 notes due 2040 7.50 notes due 2019 0219, 400,000 $363,200,000 244,000,00 $219,000,000 * 26,900,000 The above table summarizes the long-term debt of the Company at December 31, 2017. All of the notes were originaly issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date. Assuming that the notes pay interest annually and mature on December 31 of the respective years. (EV.of S1. EM.olS1. EVA of Si. EVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Suppose that Healdsburg wants to pay off the 8.70% notes on December 31, 2018, (e., five years early) when the going interest rate is 6%, thereby retiring the $363,200,000 in debt. How much would Healdsburg have to pay for the notes (principal only) on this date in order to satisty the noteholders? (Round your final answer to the nearest dollar amount.) [The following information applies to the questions displayed below.) The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2017 disclosed the following: $219,400,000 $363,200,000 $244,000,000 $219,000,000 $ 26,900,000 8.20 notes due 2018 8.70 notes due 2023 8.958 notes due 2032 8.58 notes due 2040 7.50 notes due 2019 The above table summarizes the long-term debt of the Company at December 31, 2017. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date. Assuming that the notes pay interest annually and mature on December 31 of the respective years. (FV of $1, PV of $1. EVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Suppose that Healdsburg renegotiates the 8.95% notes on December 31, 2023, when the going interest rate is 6%. Healdsburg agrees to make 12 equal annual installments, commencing on December 31, 2024, rather than pay the annual interest payments and the $244 million in a single amount at maturity. What would the annual payments be? (Enter your answer in whole dollars. Round your final answer to nearest whole dollar.) Annual payments (The following information applies to the questions displayed below.] The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2017 disclosed the following: 8.20 notes due 2018 8.70 notes due 2023 8.95 notes due 2032 8.588 notes due 2040 $219,400,000 $363,200,000 $244,000,000 $219,000,000 7.50 notes due 2019 $ 26,900,000 The above table summarizes the long-term debt of the Company at December 31, 2017. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining balances at this date. Assuming that the notes pay interest annually and mature on December 31 of the respective years. (FV of $1. PV of $1, EVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Suppose that Healdsburg enters into a sales contract with an auto manufacturer on January 1, 2018, to provide tires that cost Healdsburg $19.9 million to produce. The buyer offers Healdsburg $6.95 million in cash and agrees to take over only the principal payment on Healdsburg's 7.50% debt notes. Assume that the going market interest is 7% at the time. What would Healdsburg's gross profit be on the sale? (Enter your answer in whole dollars. Round your final answer to nearest whole dollar.) Gross profit
Step by Step Solution
★★★★★
3.32 Rating (149 Votes )
There are 3 Steps involved in it
Step: 1
Solution Healdsburg Company 1 Suppose that Healdsburg want to pay off the 870 notes on December 31 2...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started