Answer:
$9.7408
Explanation:
For computing the current stock price, first we have to determine the cost of equity which is shown below:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Cost of equity = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.5% + 1.70 × (10.50% - 4.5%)
= 4.5% + 1.70 × 6%
= 4.5% + 10.2%
= 14.7%
Now the current stock price would be
Cost of equity = Next year dividend ÷ current stock price + growth rate
14.7% = $0.79875 ÷ current stock price + 6.5%
14.7% - 6.5% = $0.79875 ÷ current stock price
8.2% = $0.79875 ÷ current stock price
So, the current stock price would be
= $9.7408
Answer:
The correct answer is C: $1,925,000
Explanation:
Giving the following information:
Last month, direct materials (electronic components, etc.) costing $550,000 were put into production. Direct labor of $880,000 was incurred, manufacturing overhead equaled $495,000.
Total product cost= direct material + direct labor + MOH= 550000 + 880000 + 495000= $1,925,000
Answer:
The journal entry to record the purchase on August 7 is:
Debit Merchandise $9,750
Credit Accounts Payable $9,750
Explanation:
The terms of 1/10, n/30 means 1% discount for the payment within 10 days and the full amount to be paid within 30 days.
The company purchased $9,750 of merchandise on August 7, returned $1,500 worth of merchandise on August 11, paid the full amount due on August 16 and received the discount. Juniper Company uses the gross method of accounting for purchases. Following accrual accounting method, the journal entry to record the purchase on August 7 is:
Debit Merchandise $9,750
Credit Accounts Payable $9,750
Answer:
The hair dryer cost cannot exceed 27 dollars per unit
Explanation:
the target cost will the one which achieve the target profit at the selling price of the market.
In this case we are given that selling price is $53 and we want to achieve a 26 dollar gain per unit therefore:
revenue - cost = profit
revneue - profit = cost
53 -26 = cost
cost = 27
Answer:
The answer is job description (JD).
Explanation:
The job description is the summary of tasks, duties, and responsibilities for a particular position. The job description also includes the requirements for the position holder. In some cases, it may details the reporting line, compensation and benefits regarding to the job.