Answer:
No, since the difference between his calculated stock price and the actual stock price most likely indicates that his estimate of dividend growth rate was incorrect.
Explanation:
Current Estimated Stock Price
P0=D1/(ke-g)
P0=(0.64(1.06))/(0.08-0.06)
P0=33.92
The Employees of the firm's production department lack clarity in decisions regarding quality standards for manufacturing. :)
Answer:
d.
Explanation:
From the given information;
the quarter average sale = expected total sales ÷ number of quarter
= 14800 ÷ 4
= 3700
The forecast for the first quarter = average quarter sale × seasonal factor
= 3700 × 0.70
= 2590
Thus, the expected sales is more than 2500 but lesser than 3000
Answer:
The correct answer is (a)
Explanation:
Indirect cost is a cost that is related to transforming the product from raw to finished good. Plant manager, maintenance manager and janitorial personnel all help in the process of transforming a good that is why they are the example of indirect labour cost. Machine operators are not an example of indirect cost as it is a specific duty and not a job which requires doing different duties it is a direct cost
Answer:
$214,500
Explanation:
For the computation of the amount of contribution margin first we need to follow some steps which are shown below:
No of units sold = Total sales ÷ selling price per unit
= $374,400 ÷ $24
= $156,00
Variable cost = No of units sold × Variable cost per unit
Variable cost = $15,600 × $13
=$202,800
Contribution margin = Sales - Variable cost
= $374,400 - $202,800
= $171,600
CM ratio = Contribution margin ÷ Sales
= $171,600 ÷ $374,400
= 0.46
Contribution margin = CM ratio × Sales Contribution margin
= 0.46 × (1.25 × $374,400)
= $214,500