Answer:
For conversion costs, the equivalent units of production are 1,610 units. The right answer is B
Explanation:
According to the given data we have the following:
begging work in progress = 280 units
units started=1450 units
Therefore, total input= 280 units + 1450 units
Total input = 1730 units
There is end work in process of 120 units
Therefore, the equivalent units of production are=Total input-end work in process
The equivalent units of production=1,730 units-120 units
The equivalent units of production=1,610 units
For conversion costs, the equivalent units of production are 1,610 units
The answer is $230,000. For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to $230,000
Answer:
a). Future price of stock in five years=$98.97
b). The current stock price will not be affected by an increase of $1 in stock price, this is because increase in stock price is a function of the expected dividend growth rate and not the current stock price
Explanation:
a). Use the expression for calculating the required rate of return as to determine the expected dividend growth rate follows:
RRR=(EDP/SP)+DGR
where;
RRR=required rate of return
EDP=expected dividend payment
SP=share price
DGR=dividend growth rate
In our case:
RRR=10%=10/100=0.1
EDP=$1
SP=$65.88
DGR=y
replacing in the original expression;
0.1=(1/65.88)+y
y=0.1-(1/65.88)
y=0.0848
The expected dividend growth rate=8.48%
Future price of stock=Current price(1+DGR)^n
where;
Current price=$65.88
DGR=8.48%=8.48/100=0.0848
n=5 years
replacing;
Future price of stock=65.88(1+0.0848)^5
Future price of stock=$98.97
b). The current stock price will not be affected by an increase of $1 in stock price, this is because increase in stock price is a function of the expected dividend growth rate and not the current stock price
Answer:
The new price will be $38.57.
Explanation:
The initial price of 120,000 outstanding shares is $54.
There are no market imperfections or taxes.
The firm declares a dividend of 40%.
The new share price will be
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