Answer:
The right solution is "$ 2.50 per DLH".
Explanation:
The given values are:
Rent,
= $ 15,000
Factor equipment's depreciation,
= $ 8,000
Indirect labor,
= $ 12,000
Production supervisor's salary,
= $ 15,000
Estimated DLHs,
= 20,000
The total manufacturing overhead will be:
= On substituting the given values, we get
=
= ($)
Now,
The predetermined overhead rate will be:
=
= ($)
<u>Answer:</u>0.775 times
<u>Explanation:</u>
Given
Gross sales 100000
Sales returns 5000
Sales discounts 2000
Tangible assets 25000
Average total assets 120000
Calculation of assets turn over ratio
Assets turnover ratio = Net sales / Average total assets
=(100000-5000-2000)/120000
=0.775 times
Assets turnover ratio is 0.775 times
Gross sales is the sales made by the company but net sales is where the actual value of sales has happened after the rebates, allowances and discounts. Assets turn over ratio is used to measure the company's abilities to utilize its assets efficiently in generating sales income to the company.
Answer: 8%
Explanation:
Profit Margin = Net income / Net sales
2017 Net income ⇒ $54,400
2017 Net Sales ⇒ $680,000
Profit Margin₂₀₁₇ = 54,400/680,000
= 0.08
= 8%
Answer:
Intrinsic value of the stock = $50
Explanation:
Dividend paid in the upcoming year, D = $3
Dividends are expected to grow at the rate, g = 8% per year
Risk-free rate of return, Rf = 5%
Expected return on the market portfolio, Rm = 17%
Beta = 0.75
Intrinsic value of the stock, Po = ?
Calculating Cost of Equity (Ke)-
Ke = Rf + Beta (Rm - Rf)
Ke = .05 + 0.75 (0.17 - 0.05)
Ke = 0.05 + 0.09
= 0.14
Ke = 14%
Calculating Intrinsic value of stock (P0)
Po = $50