Answer:
The stock price is $37.16
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
Formula to calculate the value of stock
Price = Dividend / ( Rate or return - growth rate )
Price = $3.27 / ( 12.2% - 3.4% )
Price = $3.27 / 12.2% - 3.4%
Price = $3.27 / 8.8%
Price = $37.16
Answer:
1. To reduce the company's tax bill, Jack uses total cost to value inventory instead of using product cost as required by law.
- Competence: accounting records must follows applicable laws, regulations and standards, you must IRA and GAAP rules when preparing financial statements and tax reports.
2. Since Emilie works in the accounting department, she is aware that profits are going to fall short of analysts' projections. She tells her aunt to sell stock in the company before the earnings release date.
- Confidentiality: accounting records must b confidential unless you are authorized to disclose them, and you are not authorized to disclose the information to your aunt.
3. Veronica pays a Mexican official a bribe of $50,000 to allow the company to locate a factory in that jurisdiction so that the company can take advantage of the cheaper labor costs. Without the bribe, the factory cannot be located in that location.
- Integrity: you must abstain from performing illegal activities, and bribery is illegal.
4. There is a failure in the company's backup system after a system crash. Month-end reports will be delayed. Kayla, the manager of the division experiencing the system failure, does not report this upcoming delay to anyone since she does not want to be the bearer of bad news.
- Credibility: you must report all relevant and important information regardless of whether that information will make you bad or not.
Answer: The correct answer is e) $32.
Explanation:
Petty cash fund. $300
Office supplies. (80)
Merchandise inventory. (160)
Miscellaneous expenses. (20)
Cash shortage. (8)
Balance in petty cash. $32
In terms of accounting entries,
Debit Office supplies. $80
Debit Merchandise inventory. $160
Debit Miscellaneous expenses. $20
Debit Cash shortage. $8
Credit Petty cash refund. $268
In the above entries, $268 would be refunded to petty cash fund to reinstate it to $300.
Answer:
c) $40,000 to buy the part
Explanation:
For computing the better off first we have to compute the per unit cost which is shown below:
= Direct material per unit + Direct labor per unit + variable overhead + applied variable overhead
= $12 + $25 + $13 + $30 × 30%
= $12 + $25 + $13 + $9
= $59
The difference cost would be
= $59 - $55
= $4
Now the better off would be
= Number of units × difference cost
= 10,000 units × $4
= $40,000
