Answer:
Market price: 28.90
Explanation:
We will calculate the stock price using the gordon dividend grow model:
D1 = 1.25
grow = g = 6% = 6/100 = 0.06
return= for the return, based on the information give, we will calculate it using the CAPM model:
risk free = 0.04
premium market=(market rate - risk free)= 0.055
beta(non diversifiable risk)= 1.15
Ke =cost of capital = return in the dividend grow formula = 0.10325
Now, we calculate the stock price:
Stock: 28.9017341
Market price: 28.90
Answer: Total cost of the units made in January = $38,500
Explanation:
Given that,
At the beginning of the year, overhead costs = $59,000
Units produced at this cost = 5900 units
Direct material cost = $25 per unit
Direct labor cost = $35 per unit
Units produced during January = 550 units
Predetermined overhead rate = 
= 
= $10 per unit
Now,
Costs incurred in January:
Direct material cost = $25 per unit × 550 units = $13750
Direct labor cost = $35 per unit × 550 units = $19250
Overhead cost = $10 per unit × 550 units = $5500
∴ Total cost of the units made in January = Direct material cost + Direct labor cost + Overhead cost
= 13750 + 19250 + 5500
= $38,500
Answer: work in process inventory
Explanation:
The direct labor costs refers to the costs that is incurred by a company which has to do with the payment to the employees involved in the production activities of the company.
When a company assigns factory labor costs to jobs, then the direct labor cost is debited to the work in process inventory.
Answer:
(a) Shift in the supply curve
(b) Shift in the supply curve
(c) Movement along the supply curve
(d) Shift the supply curve.
Explanation:
When there is any change in the price of the good then as a result there is a change in the quantity supplied of that good and there is a movement along a supply curve.
When there is any change in the factors other than price then as a result there is a shift in the supply curve.
(a) If there is an improvement in the factor productivity then as a result this will increase the production of the good and this will shift the supply curve rightwards.
(b) This will shift the supply curve of the product.
(c) If there is an increase in the price of the good then as a result there is an increase in the quantity supplied of the good and there is a upward movement along the supply curve.
(d) If there is an increase in the resource prices then as a result this will increase the cost of production of the good. Hence, there is a fall in the supply of the product and there is a leftward shift in the supply curve.