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3 years ago

Required information

Business

1 answer:

trasher [3.6K]3 years ago

6 0

Answer:

Options A and D.

Explanation:

Just like it is given in the question above, the concept of internal control system has to do with the regulations and policies that are being set by each companies/firms or agencies or bodies or business organization in order to increase their productivity and efficiency.

The Sarbanes-Oxley Act was enacted on the 30th day of the month of July in the year 2002 by the 107th United States of America congress and its main work or purpose is to make sure sure that there is reliability and transparency in financial and accounting institutions and also to protect investors.

When a breech is perceived, group of people will be appointed to conduct "An effective internal control" and also for the "Auditor's work overseen by Public Accounting Board."

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Worker Corporation allocates its single support department to its operating departments based on the single rate method using ma

Firlakuza [10]

Answer:

$85 per machine hour

Explanation:

Actual Budgeted

Fixed costs $50,000 $47,960

Machine hours – Assembly 1,900 1,976

Variable costs – Assembly $121,000 $120,000

since the single rate method does not distinguish between fixed or variable costs, in order to determine the cost allocation rate we must add the fixed allocation rate and the variable allocation rate:

variable allocation rate = $120,000 / 1976 machine hours = $60.73
fixed allocation rate = $47,960 / 1976 = $24.27

total = $60.73 + $24.27 = $85 per machine hour

7 0

3 years ago

King Waterbeds has an annual cash dividend policy that raises the dividend each year by 4%. The most recent dividend, Div 0,

vovikov84 [41]

Answer:

a) With a 7% return, the current stock price = $34.67.

b) The current stock price = $17.33, with a 10% return.

c) The current stock price = $14.86, with a 11% return.

d) The current stock price = $9.45, with a 15% return.

e) Current stock price = $7.43 assuming the interest rate is 18%

Explanation:

Requirement A

An investor wants a return of 7%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 7% = 0.07

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.07 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.03

Hence with a 7% return, the current stock price = $34.67.

Requirement B

An investor wants a return of 10%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 10% = 0.10

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.10 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.06

Hence the current stock price = $17.33, with a 10% return.

Requirement C

An investor wants a return of 11%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 11% = 0.11

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.11 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.07

Hence the current stock price = $14.86, with a 11% return.

Requirement D

An investor wants a return of 15%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 15% = 0.15

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.15 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.11

Hence the current stock price = $9.45, with a 15% return.

Requirement E

An investor wants a return of 18%,

We know,

Dividend-growth model, stock price, $P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

Here,

$P_{0}$ = Today's stock price = ?

$k_{e}$ = 18% = 0.18

g = growth rate = 4% = 0.04

$D_{1}$ = Next year dividend = $D_{0}*(1 + g)$ = $0.50 × (1 + 0.04) = $0.50 × 1.04 = $0.52

Putting the values into the above formula, we can get,

$P_{0}$ = $D_{1}$ ÷ ( $K_{e}$ - g)

$P_{0}$ = $1.04 ÷ (0.18 - 0.04)

or, $P_{0}$ = $1.04 ÷ 0.14

Hence the current stock price = $7.43, with a 18% return.

7 0

4 years ago

MJ LTD is expected to grow at various rates over the next five years. The company just paid a $1.00 dividend. The company expect

Black_prince [1.1K]

Answer:

$21.859

Explanation:

According to the scenario, computation of the given data are as follow:-

Present Value = D0 × (1 + growth rate)^time ÷ (1 + Required Rate of Return)^time period

1st Year PV = $1 × (1 + 0.20)^1 ÷ (1+ 0.12)^1

= 1.20 ÷ 1.12

= 1.071

2nd Year PV = $1 × (1 + 0.20)^2 ÷ (1+ 0.12)^2

= $1 × (1.44) ÷ 1.254

= $1.148

3rd Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10) ÷ (1 + 0.12)^3

= $1 × (1.44) × (1.10) ÷ 1.405

= $1.127

4th Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10)^2 ÷ ( 1 +0.12)^4

= $1 × (1.44) × (1.21) ÷ 1.574

= $1.107

5th Year PV = $1 × (1 + 0.20)^2 × ( 1 +0.10)^3 ÷ (1 + 0.12)^5

= $1 × (1.44) × (1.331) ÷ 1.762

= $1.088

6th Year PV = $1 × (1 + 0.20)^2 × (1 + .10)^3 × (1.05) ÷ [(0.12 - 0.05) × (1+.12)^5]

= $1 × (1.44) × (1.331) × (1.05) ÷ (0.07) × (1.762)

= $2.012 ÷ 0.1233

= $16.318

Now

Share’s Current Value is

= $1.071 + $1.148 + $1.127 + $1.107 + $1.088 + $16.318

= $21.859

We simply applied the above formula

5 0

3 years ago

A price maker Group of answer choices faces a horizontal demand curve. is a seller that searches for good employees and pays the

Tatiana [17]

Answer: is a seller that has the ability to control to some degree the price of the product it sells.

Explanation:

A price maker is a firm with the ability to influence the market price of its goods or services.

Features of a price makers

1. They are usually monopolies

2. They have a downward-sloping demand curve

3 The goods they produce do not have perfect substitutes,

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3 years ago

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Varvara68 [4.7K]

Answer:

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Explanation:

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