Answer:
the standard price per gallon is $5.25
Explanation:
the computation of the standard price per gallon is given below;
Materials Price Variance = Actual Quantity × (Standard Price - Actual Price)
$90,000 = 40,000 × (Standard Price - $3)
$2.25 = Standard Price - $3
Standard Price = $5.25
Hence, the standard price per gallon is $5.25
The same should be considered
Answer:
purchase the same amount as before when the price rises by 10%.
Explanation:
A perfectly inelastic demand curve is basically a straight vertical line. This means that the consumers are willing to purchase the goods or services no matter what their price is. In other words, they will keep buying them at any price, up to infinity and beyond. This is not a real scenario, because no product will be purchased at any price that the seller wants.
Answer:
Part A:
Alcoa has higher expected return hence has a higher equity cost of capital.
Part B:
Capital cost higher=0.0775=7.75% higher
Explanation:
Part A:
Those stocks whose beta is higher has higher expected return because the risk is higher in these stocks. Since Alcoa has beta value value of 2.00 which is higher than Hormel foods having beta 0.45, it means Alcoa has higher expected return hence has a higher equity cost of capital.
Part B:
Difference in beta= Beta of Alcoa-Beta of Hormel
Difference in beta=2-0.45
Difference in beta=1.55
Capital cost higher=Difference in beta*Excess return
Capital cost higher=1.55*5%
Capital cost higher=1.55*0.05
Capital cost higher=0.0775=7.75% higher
Answer:
So the cost of new stock will be 14.63 %
Explanation:
We have given dividend for next year = $2.80
Stock price = $48
Flotation rate = 5 %
Growth rate = 8 %
We have to find the cost of new common stock
We know that cost of new common stock is given by
Cost of new stock 
=
So the cost of new stock will be 14.63 %
Answer:
$27,911
Explanation:
Bellows Corp.
Bank reconciliation
As of April 30
Unadjusted book balance $28,750
Less:
Outstanding checks $900
NSF Checks $373
Add:
Interest earned $74
Error correction <u> $360
</u>
Adjusted book balance <u>$27,911</u>