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QUESTION

Instructions: Using the company and market information provided below, complete the following two tabs in this MS Excel Workbook:

 – Computation of the estimated current fair value of the company's "portfolio" of debt (notes and bonds) outstanding, as reported in its fiscal year end (FYE) 20X4 balance sheet

Tab One Question:

Based on the results of your computed estimate of the fair value of the company's debt "portfolio" (the second tab following this one) and the additional information provided below, indicate (i) the apparent total fair value ($US) of assets unrecognized or under-valued in the FYE 20X4 balance sheet and (ii) the possible kinds or categories of assets that could be unrecognized or under-valued and the apparent reasons for this. (In formulating your response, it may be helpful to review pages 17 - 18 of the background paper, Present Value Concepts and Bond Valuation, including the illustration on those pages and pages 38 and 41 - 47 of the background paper, Financial Statement Concepts and Financial Reporting.) Limit the length of your response to 150 words.

Tab Two Question:

Compute the current fair value of the bank note syndicated in 20X3, showing separately to the nearest whole $US dollar (1) the present value of the principal (face) amount of the note and (2) the present value of related interest payments due under the note. (It may be helpful to review pages 15 - 16 of the background paper, Present Value Concepts and Bond Valuation, including the illustration on those pages.) 

Tab Three Work:

Fill in data for all shaded areas using the company information from Tab One.

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