The data iuse
<span>use a 5% level of significance.
Very yes</span>
Answer: $70
Explanation:
Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price
Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)
= (3.50 * 1.30³ * 1.04) / (13% - 4%)
= $88.856
Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴
= $69.97
= $70
Answer:
<u>$485,000</u>
Explanation:
Initial cost of home= $270,000+$45,000= $315,000.
Recognized gain= $800,000 - $315,000 = $485,000.
Remember, it was mentioned that Abigail and Darcy immediately purchased another home for $800,000. Very likely this money was derived from the first and only home they ever sold.
Therefore, their recognized gain after substracting the cost is $485,000.
Answer:
variable overhead efficiency variance= $22,780 unfavorable
Explanation:
Giving the following information:
Standard hours per unit of output 7.0 hours
Standard variable overhead rate $ 13.40 per hour
Actual hours 2,725 hours
The actual output of 150 units
To calculate the variable overhead efficiency variance, we need to use the following formula:
variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Standard quantity= 150*7= 1,050 hours
variable overhead efficiency variance= (1,050 - 2,750)*13.4
variable overhead efficiency variance= $22,780 unfavorable
Answer
Minimum required return in august will be $59320
Explanation:
We have given the west division of Cecchetti Corporation had average operating assets of $638,000
Net operating income = $78000
Minimum required rate of return = 14 % = 0.14
We have to find the minimum required return in august
Minimum required return is given by
Minimum required return = Average assets × minimum return rate
