Answer:
165,000 pounds
Explanation:
A Purchase Budget is required to determine the quantities and cost of purchases required for use in production.
Materials Purchase Budget for Second Quarter (Pounds)
Budgeted Production Materials (80,000 x 2) 160,000
Add Budgeted Closing Materials (90,000 x 2 x 25%) 45,000
Total Materials 205,000
Less Budgeted Opening Materials (80,000 x 2 x 25%) (40,000)
Budgeted Material Purchase (pounds) 165,000
Therefore,
Budgeted purchases of material for the second quarter would be 165,000 pounds
Answer:
C. All else being equal, the growth rate of the dividends is greater than 2%
Explanation:
The formula to calculate the fair price of a stock with a constant growth in dividends is as follows,
- P = D1 / r-g
- Where D1 is the dividend next period
- r is the required rate of return
- g is the growth rate in dividends
- P = 1.5 / 0.1 - 0.02 = 18.75
- We are taking 1.5 as D1 as it is the dividend per share DeepMind will pay next year.
So, we will be willing to pay more than 18.75 if the fair price per share today is greater than 18.75. We check all the 3 options.
A. say the required rate is 10.1%
- P = 1.5 / (0.101 - 0.02) = 18.52
- So if the required rate of return increases from 10%, the fair price per share is falling and we will be willing to pay less than 18.75 per share.
B. P = 1.2 / (0.1 - 0.02) = 15
- If D1 = 1.2,the fair price per share will be 15 which is less so we will not be willing to pay more than 15 for such share.
C. Say the growth rate in dividends is 2.1%
- P = 1.5 / (0.1 - 0.021) = 18.99
- The fair price per share increased to 18.99 if the growth rate in dividend increases by 0.1 percentage point. Thus, C is the correct answer
Project Sponsor, Most project sponsors have many interested parties or stakeholders, but someone must take the primary role of sponsorship.
Lender
which is usually the bank
Answer:
1. On the statement of cash flow record the sale of the asset under the investment section.
2. -$16,000
Explanation:
In Cash flow Statements every asset purchases and sales are viewed as investments, so you record asset sales in the investment section of the cash flow.
Therefore the exact value of the sales is recorded.
