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unsure of how to find these values using the balance sheet The conpany tax rate is 30% AutoSave On FINIFOF Assignment. Michael Nikolovskis File Home
unsure of how to find these values using the balance sheet
The conpany tax rate is 30%
AutoSave On FINIFOF Assignment. Michael Nikolovskis File Home Insert Draw Page Layout Formulas Data Review View Help 27 Calibri 18 AA = BIU- -A 2 Wrap Text Merge & Center Delete- De $ . % 91 Sort & FI Format Conditional Format as Cell Formatting Table Styles Styles les se Clipboard Font Alignment Number CE Editing L48 X & COST (3 decimal places) VALUE (Whole numbers) WEIGHT (2 decimal places) SOURCE OF CAPITAL Bank Loan (interest only) Before-tax cost of bank loan Market value of bank loan Mortgage Loans Before-tax cost of mortgage loan Market value of mortgage loan Corporate Bonds Credit spread Credit spread as a percentage (2 decimal places) basis points 256 2.56% Student No. Balance Sheet Online Data Credit Spreads Project Info Part 1 Part 2 Type here to search O BI IA FIN1FOF- FUNDAMENTALS OF FINANCE - ASSIGNMENT Sydney Manufacturing Company Ltd Balance Sheet as at 31/12/19 ASSETS LIABILITIES Notes 1 Cash Accounts Receivable Inventory Property, plant & equipment 110 210 620 1,120 Accounts payable Bank loan interest only) Mortgage Loan Corporate bonds 110 250 520 350 2 3 Total Assets 2,060 Total liabilities 1,230 400 200 SHAREHOLDERS' EQUITY Ordinary shares 4 Preference Shares 5 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 230 830 2,060 Notes 1. The interest rate on the bank loan is 8.7% p.a. 2. The interest rate on the mortgage loan is 5.8% p.a. 3. The corporate bonds have a credit rating of AA- and have 4 years to maturity. They make quarterly coupon payments at a coupon rate of 8% p.a. 4. The ordinary shares are shown on the balance sheet at their book value of $1 per share. They have a beta of 1.9. They are expected to pay a dividend of $0.06 next year. The dividend is expected to grow at a rate of 8% p.a. for the following 4 years, and after that it will grow at a constant rate of 3% p.a. in perpetuity. 5. The preference shares have a par value of $1 each and are shown on the Balance Sheet at their par value. They pay a constant dividend of $0.11 and they are currently trading for $1.01. 6. The expected return on the market is 7.3% Step by Step Solution
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