Calculate the weighted-average interest rates

Assignment Help Accounting Basics
Reference no: EM131711630

Question - On March 1, 2016, XYZ, Inc. obtained a $35,000,000 5-year loan at 12% to help finance construction of a building. During the year the company also had the following debt:

$2,000,000 Note Payable at 8.5%

$3,500,000 Note Payable at 7.8%

Calculate the weighted-average interest rates that management should use for interest capitalization purposes. Show your calculation in detail.

Reference no: EM131711630

Questions Cloud

Discuss again washington held her position : With the wind in their faces, both crews were fairly flying down the course now, with spray breaking over the bow of their shells as they skipped from wave
The washington boat were veterans of joe''s all sophomore : the Washington boat were veterans of Joe's all sophomore crew of the year before: Bud Schacht, George Lund, Delos Schoch, and Chuck Hartman
Discuss physical security threat that technologies introduce : Imagine the possibility of being able to control the temperature. Discuss some of the other physical security threats that these technologies might introduce.
Discuss god whose life is an inclusive life of sharing : one of the most important teaching of the Christians church, is a doctrine of a God whose life is an inclusive life of sharing
Calculate the weighted-average interest rates : Calculate the weighted-average interest rates that management should use for interest capitalization purposes. Show your calculation in detail
Determine the initial valuation of each asset samtech : Samtech Manufacturing purchased land and building for $5 million. Determine the initial valuation of each asset Samtech acquired in these transactions
Discuss the sole possession of god : Wealth building through the use of land falls short of biblical standards. Biblical text clearly emphasize that all land is the sole possession of God
How does sleep affect memory : How does sleep affect memory? To find out, eight students learned a list of 10 nonsense words. For the next 4 hours, half of them slept and half engaged.
Discuss frequent streets and short blocks are valuable : Jane Jacobs mentions in her book "frequent streets and short blocks are valuable because of the fabric of intricate cross-use that they permit

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd