Answer:
Dividend yield = 5.54%
The expected capital gains yield = 6%
Explanation:
Next Dividend (D1) = $1.44
Growth rate (g) = 6%
Required return (Ke) = 6% + 5.54% = 11.54%
Ke-g = 11.54% - 6% = 5.54%
Price = D1 / (ke / g) = 1.44 / 5.54% = $25.9927 = $26
a. Dividend yield = D1 / Price = $1.44 / $26
Dividend yield = 0.05538
Dividend yield = 0.0554
Dividend yield = 5.54%
b. The expected capital gains yield = Required return (Ke) - Dividend yield
The expected capital gains yield = 11.54% - 5.54%
The expected capital gains yield = 6%
Answer: <u><em>Depreciation for the first year = 17825</em></u>
Explanation:
Given:
Machine purchased for $125,000
Salvage value of $10,000
Output = 100,000
First year of operation, Output = 15500
First, we'll evaluate depreciation per unit over the entire life of the machine:
i.e. 
Depreciation per unit = 
<em>Depreciation per unit = 1.15</em>
Now, we'll compute the depreciation for the first year:
Depreciation for the first year = Depreciation per unit × Output (first year)
Depreciation for the first year = 1.15 × 15500
<u><em>Depreciation for the first year = 17825</em></u>
Answer:
$171,360
Explanation:
Given that,
At September 1, 2018, Swifty Co. reported stockholders’ equity = $156,000
Revenues = $37,400
Expenses = $20,000
Purchased equipment = $4,920
Paid dividends = $2,040
Net income:
= Revenues - Expenses
= $37,400 - $20,000
= $17,400
Stockholders’ equity at September 30, 2018:
= Beginning balance + Net income - Dividend paid
= $156,000 + $17,400 - $2,040
= $171,360
Therefore, the amount of stockholders’ equity at September 30, 2018 is $171,360.
Answer:
The correct answer to the following question will be "Marketing".
Explanation:
- Marketing is the analysis and administration of the partnership of trade. It's the corporate process of making partnerships with and rewarding clients.
- Since marketing is being used to retain customers, which is one of the primary components of business and its management.
- It's a collection of tactics and practices that affect how we do business, the clothing we wear, where we sleep, and how we spending our money or time and focus our efforts.
Therefore, Marketing is the right answer.
Answer:
$400 favorable
Explanation:
The computation of the volume variance is shown below:
Fixed overhead Volume Variance = Actual Overheads - Budgeted Overheads
where,
Actual overhead is
= 5,200 units × 2 hours × $1
= $10,400
And, the budgeted overhead is
= 5,000 units × 2 hours × $1
= $10,000
So, the volume variance is
= $10,400 - $10,000
= $400 favorable
We simply deduct the budgeted cost from the actual cost so that the difference could be come
