Answer:
1) The fixed overhead production-volume variance is $14400 favourable.
2) The fixed overhead spending variance is $9000 unfavourable.
Explanation:
1)
Fixed overhead production volume variance
= amount applied * amount budgeted
= 144000/30000
= 4.80 per unit
= 4.80*33000 - 144000
= $14400 favourable
Therefore, The fixed overhead production-volume variance is $14400 favourable.
2)
fixed overhead spending variance
= actual overhead - budgeted overhead
= 153000 - 144000
= $9000 unfavourable
Therefore, The fixed overhead spending variance is $9000 unfavourable.
Answer:
a. Secured bonds - A secured bond is a bond that is issued with a collateral backing the loan.
b. Callable bonds - A bond that the issuer can call off, or pay off, at any time, not necessarily at maturity.
c. Convertible bonds - A bond that can be converted into equity (stocks). If the bondholder wishes, he can exchange his bond for ownership of stocks in the bond issuer firm.
d. Term bonds - A bond that has one single, specific maturity date.
e. Serial bonds - A bond that has several maturity dates.
Answer:
C) The chronological context
Explanation:
Chronological context refers to time related factors that affects affects communication. The effect could be favourable or unfavourable.
In this scenario because Andy had worked for a long time and he feels he is hard working, he feels he deserves a pay raise.
His need for a pay raise is time based. It is initiated by his length of service in the company. So this is a chronological context in which a time based factor affects communication between Andy and Anna.
Answer:
Risk-free rate (Rf) = 8%
Return on market portfolio (Rm) = 15%
Beta (β) = 1.2
Ke = Rf + β(Rm - Rf)
Ke = 8 + 1.2(15 - 8)
Ke = 8 + 1.2(7)
Ke = 8 + 8.4
Ke = 16.40%
Earnings per share (EPS) = $10
Current dividend paid (Do) = 40% x $10 = $4
Retention rate (b) = &6/$10 x 100 = 60% = 0.6
ROE (r) = 20% = 0.2
Growth rate (g) = b x r
= 0.6 x 0.2
= 0.12 = 12%
Current market price (Po)
= Do<u>(1 + g) </u>
Ke - g
= $4<u>(1 + 0.12)</u>
0.1640 - 0.12
= $4<u>(1.12)</u>
0.044
= $101.82
Explanation:
First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).
Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.
