Answer:
the annual depreciation rate is 25%
Explanation:
The computation of the depreciation rate is shown below:
= Yearly depreciation ÷ (Purchased cost - salvage value)
= ($3,000 × 12 months) ÷ ($180,000 - $36,000)
= $36,000 ÷ $144,000
= 25%
Hence, the annual depreciation rate is 25%
we simply applied the above formula
Answer:
option 2
Explanation:
to determine the better option, calculate the present value of option 2. The more suitable option is the option with the higher present value
Present value is the sum of discounted cash flows
Present value = future value / ( 1 + r)^n
r = interest rate
n = number of years
6500 / ( 1.08^3) = 5159.91
the present value of option 2 is higher than that of option 1,, so pick option 2
Answer:
The maximum amount that an onvestor would be willing to pay for the stock today is $76.47
Explanation:
The constant growth model of the dividend growth adn DDM aproach will be used to calcualte the value of the stock as its dividends will grow by a constant percentage forever.
The price of the stock today based on this model will be,
P0 = D1 / r - g
Where,
D1 is the dividend expected for next year
r is the required rate of return
g is the growth rate in dividends
P0 = 5.2 / (0.14 - 0.072)
P0 = $76.47
Answer:
The actual manufacturing cost per unit is 23.46
Explanation:
Step 1. Given information.
- Direct material $10.00
- Direct labor $8.00
- Variable overhead $3.00
- Fixed overhead $2.00
- Total standard cost per unit $23.00
- overhead 29.920
Step 2. Formulas needed to solve the exercise.
Actual manufacturing cost per unit
Direct materials = Fixed overhead * price direct material
Direct labor = direct labor * price per hour
cost per unit = Total cost / units sold
Step 3. Calculation.
(+) Direct materials = 12,200*4.80 = 58.560
(+) Direct labor = 5,950*8 = 47.600
(+) Overhead 29.920
Total 136.080
Cost per unit = 136,080/5,800
Cost per unit = 23.46
Step 4. Solution.
The actual manufacturing cost per unit is 23.46
Answer: Setting your own work schedule.
Explanation:
A major advantage of setting up a business is that the individual would no longer be under the control of any other person, therefore the individual can easily set a work schedule favorable to himself. The work schedule is the amount of time a worker is required to spend at his/her workplace. Nobody determines the work schedule for a business owner, apart from the business owner.