The financial management practices which are least effective in creating and monitoring an operating budget include top down/bottom up budgets, poor inventorying, lack of control, over control, and lack of staff investment.
In business, financial management includes the practice of making a business plan and then ensuring that all departments which falls under it stay on track and work properly.
Creating and monitoring an operating budget for the national government involves four distinct processes which are, budget preparation, budget authorization, budget execution and accountability.
Hence, the operating budget helps in keeping track of the income and expenses in an organization.
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A: raises
B: lowers
c: does not change
I would put B as the answer because the government helps control the price so everyone can rent an apartment.
Question Completion:
Estimated manufacturing overhead costs = $156,000
Estimated direct labor cost = $390,000
Estimated direct materials cost = $350,000
Answer:
Pajama Corp.
The cost driver rate = $0.40 per DL cost.
Explanation:
a) Data and Calculations:
Estimated manufacturing overhead costs = $156,000
Estimated direct labor cost = $390,000
Estimated direct materials cost = $350,000
Cost driver rate = $0.40 ($156,000/$390,000)
b) To calculate the cost driver rate, Pajamas Corp. divides the total estimated manufacturing overhead costs by the cost driver (direct labor cost). This implies that the cost driver rate is the total cost of activity pool divided by its cost driver. This yields the amount of overhead and indirect costs related to a particular activity.
Answer:
First Expected Dividend will come in at the end of Year 3 or t=3 assuming current time is t=0.
D3 = $ 4.25, Growth Rate for year 4 and year 5 = 22.1 %
Therefore, D4 = D3 x 1.221 = 4.25 x 1.221 = $ 5.18925 and D5 = D4 x 1.221 = 5.18925 x 1.221 = $ 6.33607
Growth Rate post Year 5 = 4.08 %
D6 = D5 x 1.0408 = 6.33607 x 1.0408 = $ 6.59459
Required Return = 13.6 %
Therefore, Current Stock Price = Present Value of Expected Dividends = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(5)] + 4.25 / (1.136)^(3) + 5.18925 / (1.136)^(4) + 6.33607 / (1.136)^(5) = $ 45.979 ~ $ 45.98
Price at the end of Year 2 = P2 = Present Value of Expected Dividends at the end of year 2 = [6.59459 / (0.136-0.0408)] x [1/(1.136)^(3)] + 4.25 / (1.136) + 5.18925 / (1.136)^(2) + 6.33607 / (1.136)^(3) = $ 59.3358 ~ $ 59.34
Dividend Yield at the end of year 3 = DY3 = D3 / P2 = 4.25 / 59.34 = 0.07612 or 7.612 %
Total Required Return = 14. 6 %
Therefore, Required Capital Gains Yield = 14.6 % - 7.612 % = 6.988 %
