now. The project cost $14.1 million and the company paid $735 ddition, the equity issued had a flotation cost of 7.1 percen hereas the debt issued had a flotation cost of 3.1 percent of Ompany issued new securities in the same proportion as its hat is the company's target debt-equity ratio? (Do not round im nd round your answer to 4 decimal places, e.g., 32.1616.) Debt-equity ratio
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- Pardon Me, Inc., recently issued new securities to finance a new TV show. The project cost $14.7 million, and the company paid $795,000 in flotation costs. In addition, the equity issued had a flotation cost of 7.7 percent of the amount raised, whereas the debt issued had a flotation cost of 3.7 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt−equity ratio?Goodbye Inc. recently issued new securities to finance a new TV show. The project cost $19 million, and the company paid $1,150,000 in flotation costs. In addition, the equity issued had a flotation cost of 7 percent of the amount raised, whereas the debt issued had a flotation cost of 3 percent of the amount raised. If Goodbye issued new securities in the same proportion as its target capital structure, what is the company's target debt-to-equity ratio? (Round your intermediate calculations to 4 decimal places. Round the final answer to 4 decimal places.) Debt-equity ratioJudson Inc. recently issued new securities to finance a new TV show. The project cost $14.8 million, and the company paid $805,000 in flotation costs. In addition, the equity issued had a flotation cost of 7.8% of the amount raised, whereas the debt issued had a flotation cost of 3.8% of the amount raised. If Judson issued new securities in the same proportion as its target capital structure, what is the company's target debt-equity ratio? (Do not round intermediate calculations. Round the final answer to 4 decimal places.) Debt-Equity ratio
- Delights, Inc., recently issued new securities to finance a new TV show. The project cost $35 million, and the company paid $2.2 million in flotation costs. In addition, the equity issued had a flotation cost of 7 percent of the amount raised, whereas the debt issued had a flotation cost of 3 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt-equity ratio?Cookies 'n Cream, Incorporated, recently issued new securities to finance a new TV show. The project cost $45 million, and the company paid $2.2 million in flotation costs. In addition, the equity issued had a flotation cost of 7 percent of the amount raised, whereas the debt issued had a flotation cost of 2 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company's target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) Debt-equity ratioIn its year end financial statements, Big Bank Corporation reports marketable debt securities of $416,099 million. The footnotes disclose that these securities have an amortized cost of $418,961 million. Which of the following is true? Select one: a. There are net unrealized losses of $2,862 million on these securities. b. These are trading securities. c. These are available-for-sale securities. d. Both A and C e. Both B and C
- In its first year of operations, Wildhorse Corporation purchased, available-for-sale debt securities costing $65.000 as a long-term investment. At December 31, 2022, the fair value of the securities is $60,500. Show the financial statement presentation of the securities and related accounts. Assume the securities are noncurrent. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) WILDHORSE CORPORATION Balance Sheet 4 $Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $120 million of 6% bonds, dated January 1, on January 1, 2021. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $100 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2021, was $110 million.Required:1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 1, record fuzzys monkeys investment on bonds on january 1 2021 2. record the interest revenue on june 30 2021 3, record the interest revenue on december 31 20214. At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balance sheet?5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (If more than one approach is possible,…Husky Corporation is a general contractor which occasionally invests excess cash in debt securities. The following transactions took place in the fourth quarter of 2021. On October 1, 2021, purchased $6 million of 3% Microsoft bonds at par value. These bonds pay interest on June 30 and December 31 of each year, and were classified as Held to Maturity (“HTM”). On November 1, 2021, purchased $3 million of 4% Amazon bonds at par value. These bonds pay interest on September 30 and March 31 of each year, and were classified as Available for Sale (“AFS”) On December 1, 2021, purchased $2 million of 3% US Treasury Bonds at par value, hoping to earn profits on short-term price increases driven by a decline in interest rates. These bonds were classified as Trading Securities. (“TS”) On December 31, 2021, received the interest payment ($45,000) on the Microsoft bonds purchased on October 1. Requirements: Prepare journal entries for the transactions in a. through d. above. Prepare journal…
- Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2021. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2021, was $70 million.Required:1. Prepare the journal entry to record Fuzzy Monkey’s investment on January 1, 2021.2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2021 (at the effective rate).3. Prepare the journal entry by Fuzzy Monkey to record interest on December 31, 2021 (at the effective rate).4. At what amount will Fuzzy Monkey report its investment in the December 31, 2021 balance sheet? Why?5. How would Fuzzy Monkey’s 2021 statement of cash flows be affected by this investment? (If more than…The ZBD Co. had USD 1, 530, 000 balance on investment on January 1, 2015. The bonds are accounted for as a financial asset at fair value through profit or loss. The company has 1,500 bonds with face value of P1,000 that pay interest of 8% every March 1 and September 1 of each year until The investment’s fair value (dirty price) at year-end is USD1,525,000. What is the interest income recognized by ZBD Co for year 2015? Show solution and explanation.Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2016. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2016, was $70 million. Required: 1. Prepare the journal entry to record Fuzzy Monkey’s investment on January 1, 2016. 2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2016 (at the effective rate). 3. Prepare the journal entry by Fuzzy Monkey to record interest on December 31, 2016 (at the effective rate). 4. At what amount will Fuzzy Monkey report its investment in the December 31, 2016, balance sheet? Why? 5. How would Fuzzy Monkey’s 2016 statement of cash flows be affected by this investment?