Suncor Energy Inc. is a major developer in the oil sands of Northern Alberta. Note 17 to Suncor’s financial statements (Exhibit 10-15) describes the company’s long-term debt as at December 31, 2009. In Exhibit 10-15 LONG TERM DEBT AND CREDIT FACILITIES Required: a. Suncor has revolving-term debt. Explain in your own words what the major features of this type of debt are. b. The revolving-term debt bears interest at variable interest rates. What advantages are there for a company to borrow at variable interest rates? How does this affect the risk of investing in Suncor? c. Suggest possible reasons why the company has borrowed in U.S. dollars. How does this affect the risk of investing in Suncor? d. The company has not disclosed the minimum cash payments that it must make on its debt over the next five years and a cumulative amount for the years after the fifth year. Why would this type of disclosure be important to users? e. You would expect that a company in the oil industry would lease some of its facilities and equipment. Does Suncor have any leases? How do you know? What kind of leases are they? SUNCOR ENERGY INC. 2009 ANNUAL REPORT
Suncor Energy Inc is a major developer in the oil
Using budget data, how many Apple iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to...