Answer:
An investor will be willing to pay $40.29 for this stock.
Explanation:
A constant growth dividend discount model will be used in this case because Hudson Corporation is expected to grow at a constant rate. The formula to be used is:
Price = Expected Dividend (Dividend of Year 1) / Required Return - Growth Rate
OR
Price = 2.82 / (.1 - .03) = 2.82 / .07 = $40.29.
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(any company) Payroll for employed workers, Property costs, and taxes.
Answer:
Applied Overhead is higher than actual overhead. Hence, manufacturing overhead is $ 4,000
Explanation:
Given data:
estimated overhead = $2,40,000
Labor cost =$2,80,000
Direct labor cost = $3,00,000

= $ 0.80 per direct labor cost
=$ 2,24,000
Actual Overhead cost = $ 2,20,000
Applied Overhead is more than actual overhead. Hence, manufacturing overhead is $ 4,000.