Answer:
Results are below.
Explanation:
<u>First, we need to calculate the total cost of producing 2,900 units:</u>
Total cost= direct material + direct labor + allocated overhead
Total cost= (2*7)*2,900 + (0.5*16)*2,900 + [(0.5*16)*0.6]*2,900
Total cost= 40,600 + 23,200 + 13,920
Total cost= $77,720
<u>Now, the unitary standard cost:</u>
Unitary cost= total cost/number of units
Unitary cost= 77,720 / 2,900
Unitary cost= $26.8
Explanation:
The divisional structure is a type of organizational structure that groups each organizational function into a division. ... Each division contains all the necessary resources and functions within it to support that product line or geography (for example, its own finance, IT, and marketing departments)
Answer
a) Gordon's Constant Growth model : P0 = D1 / (r-g)
r = 3% =0.03
, g= -7% = -0.07
, D0 = $5.1
D1 = D0*(1+g)
D1 = 5.1*(1-0.07)
D1 = $4.743
P0 = 4.743/(0.03- (-0.07))
P0 = 4.743/0.10
P0 = $47.43
So, Stock M should sell at a price of $47.43 today
b) Price 8 years from now
==> P8 = D9/(r-g)
P8 = D0*(1+g)^9/(r-g)
P8 = 5.1* (1-0.07)^9 / (0.03- (-0.07))
P8 = 5.1*0.52041108298 / (0.03- (-0.07))
P8 = 2.65410
P8 = $26.54
c) Investor may want to buy the stock today for the Dividends. If the dividends paid are high enough, the present value of the dividends is also high and may more than compensate the fall in stock price. This type of stocks work and give cash flows like a project where the initial cashflows are higher and later cashflows are less because of market factors.
Answer:
total $3.36
Explanation:
required for producing 50 gallons of wine:
2,400 ounces of grape concentrate at $0.01 per ounce = $24 / 50 = $0.48 x 1.04 = $0.50
54 pounds of granulated sugar at $0.50 per pound = $27 / 50 = $0.54 x 1.1 = $0.59
60 lemons at $0.80 each = $48 / 50 = $0.96 x 1.25 = $1.20
100 yeast tablets at $0.21 each = $21 / 50 = $0.42
100 nutrient tablets at $0.14 each = $14 / 50 = $0.28
3,700 ounces of water at $0.005 per ounce = $18.50 / 50 = $0.37
Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.
total standard cost per gallon:
- grape concentrate = $0.50
- granulated sugar = $0.59
- lemons = $1.20
- yeast tablets = $0.42
- nutrient tablets = $0.28
- water = $0.37
- total $3.36
Answer:
6.73%
Explanation:
the price of the bond in seven years is:
PV = $1,000 / (1 + 5.50%)¹⁰ = $585.43
PV of coupon payments = $64.50 x 7.538 (PVIFA, 5.5%, 10 years) = $486.20
market price = $1,071.63
using an excel spreadsheet of financial calculator, the annual rate of return:
year 0 = -1030.04
year 1 = 64.5
year 2 = 64.5
year 3 = 64.5
year 4 = 64.5
year 5 = 64.5
year 6 = 64.5
year 7 = 1136.13
IRR = 6.73%
