The expected value (EV) is a
probable value for a given investment. By calculating expected values,
investors can decide the scenario most likely to give them their preferred result.<span>
<span>
Formula for expected value is:</span></span>
Expected value = stock return’s annual
dividend divided by (required return – dividend growth rate)
P₅= [$1.40×(1 + 0.02)₆<span>]/(0.16 - 0.02) = $11.26</span>
The answer is $11.26
Answer:
1. $2.50
2. $8,855.00
Explanation:
1. The computation of the company's predetermined overhead rate is shown below:-
1. Predetermined Application rate = Manufacturing overhead costs ÷ Machine hours
= $215,000 ÷ 86,000
= $2.50
2. The computation of the amount of underapplied or overapplied overhead for the year is shown below:-
Actual application = Manufacturing overhead costs ÷ Machine hours
= $210,000 ÷ 80,500
= 2.61
Now the under absrobed is
= 2.61 - 2.50
= 0.11
Now the under overhead is
= 80,500 × 0.11
= $8,855.00
Answer:
A. T Account balance $19,100
B. $31,600
C.$31,600
Explanation:
Sarah Simmons Enterprises
A.
T-account account
Dr Cr
Dr C/o 10500 Cr Beginning balance 29,600
Cr C/o 10500
Cr Balance 19,100
b.
Simmons enterprise retained earnings ending balance will be:
Retained earnings 29,100
Less Dividends 10,500
Balance 19,100
Add (10,500+2,000) 12,500
Balance 31,600
C. Ending balance of Simmons, Capital will be 31,600 just as in ( b) where the retained earnings ending was 31,600
Answer:
Operating income = $125,000
Explanation:
<u> Income statement </u>
<u>Particular Amount </u>
Sales revenue(1,880 x $400) $752,000
<u>LESS:</u><u> Cost of goods sold $433,000</u>
Gross margin $319,000
LESS: Selling expense $65,000
Commissions($752,000 x 10%) $75,200
<u> Administrative expense $53,800</u>
<u>Operating income $125,000 </u>
<u></u>
Answer:
A) True
Explanation:
Partitioning the internal rate of return (IRR) means dividing the returns from; cash flows from annual operating vs. cash flows from the resale of the investment.
The greater the proportion of resale cash flow, the greater the risk for the investor. The more return the investor gets from annual operating cash flows, the better.
