Answer:
$2 per hour
Explanation:
<u>Given</u>: Budgeted indirect cost $4000
Budgeted allocation base ; 2000 hours
Actual indirect costs incurred: $4200
Actual allocation base : 2050 hours
Standard rate for allocation of indirect cost = Budgeted indirect cost/Budgeted allocation base
= $4000/2000 hrs
= $2 per hour
Budgeted or standard indirect cost rate refers to the estimated indirect cost rate which is arrived at by dividing budgeted expenses by budgeted allocation base i.e budgeted hours here.
Answer:
You should buy more shares
Explanation:
The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.
You own 300 shares of Somner Resources' preferred stock, which currently sells for $39 per share and pays annual dividends of $5.50 per share. If the market's required yield on similar shares 12% is percent, should you sell your shares or buy more?
Solution as mentioned below:
First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.
Value of preferred stock = 5.50 / 12%
Value of preferred stock = $45.83
Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.
B. when you are making a career change
Answer:
Holly must save $2845.81 at the end of each year
Explanation:
first calculate the value of tuition fees at n = 18
Cash flow formula = Tuition × 
Discounted CF formula = Cash flow ÷ 
10.00% 0
Year Cash flows Discounted CF
0 33,799.32 33799.32
1 36,165.28 32877.52
2 38,696.84 31980.86
3 41,405.62 31108.66
FV = $129,766.37
PV = 0
N = 18
rate = 10%
using PMT function in Excel
Annual contribution = $2845.81
Answer:
$28.57
Explanation:
Dividend growth model can only be used in a situation where the firm pays a dividend which can tend to grow at constant rates reason been that the stock has been influenced by the growth rates which is involved in the dividends which means the firm can increase the dividends.
Therefore the Dividend that is to be paid next year will be:
$2Growth rates
5 %Rates of return
12% Return on Investment
Formular for the calculation of current price of the stock = D1/(r-g)
Where:
D1=2%
r=12%
g=6%
Hence:
2/ (0.12-0.05)= $ 33.33
=2/0.07
=$28.57
Therefore the amount I should be prepared to pay for the stock today will be $28.57
