Answer:
True
Explanation:
As we know that the overhead is an indirect cost
So for allocation of the factory overhead the managers are fully depend on the allocation and believed that it is correct and accurate. Also it is useful to make decisions with respect to the product mix and the price of the product
Therefore the given statement is true
And, the same is to be considered
Answer:
B.
Explanation:
You do not need collateral to be given an unsecured loan.
Answer:
A. $37,400 unfavorable
Explanation:
With regards to the above, variable overhead spending variance is computed as
= (Actual hours × Actual rate) - (Actual hours × standard rate)
= $649,400 - ( 34,000 × $18)
= $649,400 - $612,000
= $37,400 unfavorable
Therefore, Warp's variable overhead spending variance for the month of September is $37,400 unfavorable
Answer:
Explanation:
a.)
Dividend discount model(DDM) is used to determine the price of a stock.
The formula is as follows;
Price ;P0 = D1 /(r-g)
D1 = Dividend in year 1
r = capitalization rate or required rate of return
g = dividend growth rate
P0 = 8/( 0.10-0.05)
P0 = 160.
The price of the Fi corporation's stock is therefore $160.
b.)
Use the formula that shows the relationship between ROE , retention rate and growth rate. It's as follows;
g = ROE *b
g = growth rate
b = retention rate
Given Earnings per Share (EPS) = $12 and dividend = $8, find dividend payout ratio first.
retention ratio = (1 -dividend payout ratio)
dividend payout ratio = 8/12 = 0.667 or 66.7%
retention ratio ; b = (1 -0.667)
b = 0.333 or 33.3%
Plug it in the formula;
0.05 = ROE * 0.333
ROE = 0.05/0.333
ROE = 0.15 or 15%
c.)
This question is asking for the Present Value of Growth Opportunity (PVGO)
The formula is as follows;
PVGO = Price - EPS1 /r
Price = $160 (from part a)
Expected earnings per share (EPS) = $12
required rate of return(capitalization rate) ; r = 10% or 0.10 as a decimal
PVGO = 160 - 12/0.10
PVGO = 160 -120
PVGO = $40
Therefore, the market is paying $40 per share for growth opportunities.
Answer:
the equivalent uniform annual worth of owning and operting the machien at 5% diiscount rate:
$17,610.88
Explanation:
we will bring each exceptional value to present date and then calcualte the PTM of that
First step:
present value of eahc lump sum:
overhaul:
Maturity 45,000
time 5
PV 35,258
Services:
20,000 year 4 = 16,454.05
10,000 year 8 = 6,768.39
salvage value
30,000 10 years = 18,417.40
<u>total present worth:</u>
150,000 + 6,768.39 + 16454.05 + 35258 - 18,417.40 = 190,063.04
now we calcualtethe PTM of this present value
PV $190,063.04
time 10
rate 0.05
C $ 15,110.881
we add the 2,500 maintenance cost
$17,610.88
This will be the equivalent uniform annual worth of owning and operting the machien at 5% diiscount rate
