Answer: If it looks bad it IS bad.
C.
BAD MEDIA
Answer:
Using the DDM method we can find the fair value of the stock. For that we need the current years dividend, the company's growth rate and the required rate of return on the stock.
The formula for DDM is
Value = D*(1+G)/R-G
D= 1.32
G= 9.5%
R=13%
1.32*(1+0.095)/(0.13-0.095)= 41.29
The fair present value of the company based on the dividend discount model is $41.29.
Explanation:
Answer and Explanation:
1. The classification of estimated manufacturing overhead is shown below:-
Direct materials = Product cost
Direct labor = Product cost
Manufacturing overhead = Product cost
Selling expense = Period cost
2. The computation of total product cost for last month is shown below:-
= Direct materials + direct labors + manufacturing overhead
= $7,000 + $3,000 + $2,000
= $12,000
3. And, the unit product cost is
= Total product cost ÷ number of units
= $12,000 ÷ 4,000 units
= $3 per unit
Answer:
Net profit will be reduced by $5,700
Explanation:
The computation of financial advantage (disadvantage) is shown below:-
Gain from selling at the split-off point = Sold split-off point × Total units
= $11 × 2,300
= $25,300
Gain from Processing further = Sold units × Total units - Processing cost
= $13 × 2,300 - $10,300
= $29,900 - $10,300
= $19,600
Decrease in overall profit = Gain from selling at the split-off point - Gain from Processing further
= $25,300 - $19,600
= $5,700
Therefore, if commodity QI is further processed and sold, then net profit will be reduced by $5,700
