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3 years ago

Degregorio Corporation makes a product that uses a material with the following direct material standards:

Business

1 answer:

dimaraw [331]3 years ago

3 0

Answer:

Materials quantity variance = $2,350 F

Explanation:

Given:

Standard quantity = 3.7 kilos per unit

Standard price = $5 per kilo

Unit produced = 6,300

Total material = 23,780

Computation:

Materials quantity variance = (Actual quantity × Standard price) - (Standard quantity × Standard price)

Materials quantity variance = (23,780 × $) - (6,300 × 3.7 × $5)

Materials quantity variance = $118,900 - $116,550

Materials quantity variance = $2,350 F

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3 years ago

How do trade agreements of international organizations affect trade? by incentivizing the development of trade policies by elimi

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2 years ago

Trendsetters has a cost of equity of 14.6 percent. the market risk premium is 8.4 percent and the risk-free rate is 3.9 percent.

BabaBlast [244]

Given:
cost of equity of 14.6 percent
market risk premium is 8.4 percent
risk-free rate is 3.9 percent
increase company's beta to 1.4 after purchase.

We will use the CAPM or Capital Asset Pricing Model formula to solve the new cost of equity.

Re = rf + (rm – rf) * β

Where:

Re = the required rate of return on equity
rf = the risk free rate
rm – rf = the market risk premium
β = beta coefficient = unsystematic risk

We need to solve for the original beta coefficient using the given cost of equity, market risk premium and risk free rate.

Re = rf + (rm – rf) * β
14.6% = 3.9% + 8.4% * β
14.6% - 3.9% = 8.4% * β
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The initial beta coefficient is 1.27.

Using the same risk free rate, market risk premium, and a new beta coefficient of 1.4, we need to solve the cost of equity.

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3 years ago

Preferred stock, 5%, $50 par value, 1,200 shares issued and outstanding with dividends in arrears for the three prior years. Com

Ivenika [448]

Answer:

$12,000

Explanation:

total preferred dividends per year = 1,200 x $50 x 5% = $3,000

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2 years ago

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Tcecarenko [31]

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