Answer: $23.63 million
Explanation:
First and foremost, we can calculate the quarterly common stockholder dividend which will be:
= $0.25 × 1 Million
= $0.25 million
Then, the annual dividend to the common stockholders will be:
= $0.25 million × 4
= $1 million
The quarterly preferred stockholder dividend will be calculated as:
= $0.50 × 0.50 Million
= $0.25 million
We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:
= $0.25 million × 4
= $1 Million
Total Dividend would then be:
= Annual dividend to common stockholders + Annual dividend to preferred stockholder
= $1 Million + $1 Million
= $2 Million
The value of the retained earnings balance at the end of the year will then be:
= Retained Earnings at the beginning of the year + Net Income – Dividend
= $23.45 + $2.18 - $2.00
= $23.63 million
Answer:
The correct answers are the following options: A regional sales manager's salary is a direct cost of the regional office in which the sales manager works - A direct cost can be easily and conveniently traced to a specific cost object.
Explanation:
On the one hand, the name of <em>"direct costs"</em> is refered to the ones that would be directly related to a cost object, therefore that these costs are easily recognizable to the person who manages the costs due to the fact that those will be the ones that are strictly referable to the object.
On the other hand, the <em>"indirect costs"</em> are the ones that have the characteristics of being the oppositive of the direct costs. Therefore that these type of costs are the ones that would not be easily referable to a cost object.
Answer:
The net present value of this project is $5,809.78.
Explanation:
Note: See the attached excel file for the calculation of net present value of this project.
In the attached excel file, the discounting factor is calculated as follows:
Discounting factor = 1 / (100% + required rate of return)^n
Where n is a particular year in focus.
From the attached excel file, we have:
Net present value = $5,809.78
Therefore, the net present value of this project is $5,809.78.
Answer:
-$414,444.44
Explanation:
The computation of the net present value is shown below:
Net present value = Initial investment + net cash flows ÷ (required rate of return - projected growth rate)
= -$1,570,000 + $104,000 ÷ (12% - 3%)
= -$1,570,000 + $1,155,555.56
= -$414,444.44
Hence, the net present value is -$414,444.44
Since the net present value comes in negative so the project is rejected
Answer:
14.60%
Explanation:
The computation of market rate of return is shown below:-
Market rate of return = (Dividend × (1 + Growth rate)) ÷ Current price of stock + Growth rate
= ($2.8 × (1 + 3.8%)) ÷ 26.91 + 0.038
= ($2.8 × 1.038) ÷ 26.91 + 0.038
= $2.9064 ÷ 26.91 + 0.038
= 0.108 + 0.038
= 14.60%
So, for computing the market rate of return we simply applied the above formula.
