Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Financial Instruments
On 30 June 2018 Magoo Ltd issued 50 000 convertible notes with a face value of $50 million for a term of five years. Each note was convertible at the option of the holder into one ordinary share on or before maturity. The coupon interest rate is 7% per annum while the market interest rate for comparable non-convertible debt is 8% per annum. Interest is payable annually in arrears on 30 June during the term of the convertible notes.
REQUIRED - In accordance with the treatment outlined in AASB 132 'Financial Instruments: Presentation' and ensuring compliance with AASB 9 'Financial Instruments'
1. Prepare the accounting entries, including narrations, to record
(i) The issue of convertible notes on 30 June 2018, and
(ii) The interest payment on 30 June 2019.
2. Suppose the holders of the notes elect to convert the notes to ordinary shares on 30 June 2020. Present of the accounting entries, including narrations, required on 30 June 2020.
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: - Explain the goals and uses of special journals.
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.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
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, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd