Assignment Exercise 22-1 Financial Statement Capital Structures
Required: Find the three different financial statements that have varying
capital structures. Write paragraph about each that explains the debt-equity relationship
and that computes the percent of debt and the percent of equity represented.
Also note whether the percent of annual interest on debts is revealed in the
notes to the financial statements. If so, you believe the interest rate is fair
and equitable? Why? Assignment Exercise 23-1: Cost of Owing and cost of Leasing
Cost of owing and cost of leasing tables reproduced below: Required: Using the
appropriate table from the Chapter 12 Appendices, record the present value
factor at 10% for each year and compute the present value cost of owing and the
present value of leasing. Which alternative is more desirable at this interest
rate? Do you think your answer would change if the interest rate was six
percent instead of ten percent? Cost of owing: Anywhere clinic-comparative
present value For-profit cost ofowning: year0 year1 year2 year3 year4 year5
(48,750) 2, 500 2,5002,500 2,500 2,500 Net Cash Flow Present value factor
Present Value answers= Present value cost of owing= Cost of Leasing: Anywhere Clinic-
comparative Present Value Line For-Profit Cost
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