Assume Apple Corporation leases a manufacturing robot for three years. The effective interest rate is 6 percent. The lease requires a $50,000 payment in Year 1, a $30,000 payment in Year 2, and a $10,000 payment in Year 3. Apple uses the straight-line method without residual value to amortize leased assets under finance leases. Prepare all journal entries under this lease arrangement for the first two years for both cases: (1) this lease arrangement is a finance lease; (2) this lease arrangement is an operating lease.

Reactive power generation has the following capital structure. its corporate tax rate is 40%. security market value required rate of return debt $ 30 million 4 % preferred stock 30 million 6 common stock 40 million 10 what is its wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)