What is average capitalization rate on general borrowings

Assignment Help Accounting Basics
Reference no: EM133042585

Question - Hebi Corp. started constructing its new building at an estimated cost of P50,000,000 on January 1, 2021. The construction is expected to be completed by December 31, 2023. Hebi has the following borrowings outstanding during 2021:

11%, P10,000,000, interest payable annually, due on January 1, 2025 (general)

12%, P20,000,000, interest payable semiannually, issued December 31, 2020 (specific)

10%, P14,000,000, interest payable monthly, due on May 31, 2022 (general)

Hebi determined that weighted average expenditures for the construction in 2021 was P36,000,000.

1) What is the average capitalization rate on general borrowings?

2) How much is the interest expense for 2021?

Reference no: EM133042585

Questions Cloud

Determine the cost per unit for jobs : Job 40 is for 1,000 units, and Job 42 is for 200 units. Determine the cost per unit for Jobs 40 and 42 at the end of August
Find the equity value and D-E ratio : Question - Rahman Co. has an expected EBIT of $120,000 in perpetuity and tax rate of 40%. Find the equity value and D-E ratio
ICT274 E-commerce Assignment : ICT274 E-commerce Assignment Help and Solution, King Owns Institute - Assessment Writing Service - understanding of the value of the use of E-commerce
Calculate the convexity for a three-year : Question - Calculate the convexity for a three-year 4.5% coupon rate with a face value of $500,000 loan with amortised payments
What is average capitalization rate on general borrowings : Hebi determined that weighted average expenditures for the construction in 2021 was P36,000,000. What is average capitalization rate on general borrowings
Find the determinant and inverse of the matrix : Apply instances of number theory in practical construction situations and Solve systems of linear equations relevant to construction applications using matrix
Calculate Hedley earnings per share : During 2017, Hedley paid a dividend of $5 per share on 100,000 preferred shares. Calculate Hedley's 2017 earnings per share
What is the percent markup based on selling price : Question - A bar soap costs $1.13. If a markup of $0.86 is added, what is the percent markup based on selling price
Journalize the write-offs for the current year : Journalize the write-offs for the current year under the direct write-off method. If an amount box does not require an entry, leave it blank

Reviews

Write a Review

Accounting Basics Questions & Answers

  Provide journal entries to record the transactions

The funds raised were transferred to the company's business account. Provide journal entries to record the transactions during 2018/2019 financial year

  Find sally petrol demand function

Suppose that Sally's preferences over baskets containing petrol (good x), Find Sally's petrol demand function, and Sally's food demand function

  What is Tom gain or loss on the sale

Tom takes $13,000 of depreciation on the vehicle over the next two years and sells it for $15,000 at the end of that period. What is Tom's gain or loss on sale

  What is the amount of Andrew taxable gifts

Andrew and Brianna are married and live in Texas, a community-property state. What is the amount of Andrew taxable gifts

  How much will the common stockholders receive

Assuming that $234000 will be distributed as a dividend in the current year, how much will the common stockholders receive

  What is the amount of net income

Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2010. What is the amount of net income to the controlling interest for 2010

  Sooner industries charges a price of 91 and has fixed cost

sooner industries charges a price of 91 and has fixed cost of 375500. next year sooner expects to sell 18200 units and

  Estimate the total cash outflow when project starts

The company is considering an investment into a brand new and more efficient machinery. Estimate the total cash outflow when project starts

  How much is the non-controlling interest in net assets

All intangibles except goodwill are expected to have remaining lives of 8 years. How much is the non-controlling interest in net assets in 2013

  Determine the net income of Mr Michael

Mr. Michael made an additional investment of P204,000 and a cash withdrawal of P76,000 during the year. Determine the net income of Mr Michael

  Two examples of inputs to the transformation process

The supply chain is a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage to the end user.

  What is the NPV of the acquisition under the cash offer

The values of the two companies as separate entities are $15 million and $7 million, What is the NPV of the acquisition under the cash offer

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