Answer:
c. There is greater potential for high yield over a longer period
Explanation:
Answer:
a. $6,763.40
Explanation:
The computation of the selling price is shown below:
But before that the predetermined overhead rate is
For machining
= ($102000 ÷ 17,000) + $1.70
= $7.7 per machine hour
For fabrication
= ($61200 ÷ 6000) + $4.10
= $14.30 per labour hour
Now the selling price is
Direct material ($720 + $380) $1,100
Direct labor ($900 + $1,500) $2,400
Machining department overhead (7.7 × 80) $616
Fabrication department overhead (50 × 14.3) $715
Total manufacturing cost $4,831
Markup 40% $1,932.40
Selling price $6,763.40
Answer:
(D) $369.31 to $380.69
Explanation:
The formula is x ± t (s/√n)
x = 375
t = 2.010
s = 20
n = 50
Then,
375 ± 2.010 (20/√50)
= 375 ± 5.69
Answer:
$77.34
Explanation:
The computation of the current stock price is shown below:
But before that following calculations need to be done
EPS for year 2 = Dividend at year 2 ÷ Payout Ratio
= $1.96 ÷ 0.40
= $4.90
Now the price at year 2 is
Price at year 2 ÷ EPS at year 2 = PE ratio
Price at year 2 ÷ $4.90 = 18.95
Price at year 2 = $92.855
Now finally the current stock price is
= Dividend at year 1 ÷ (1 + rate of interest) + Dividend at year 2 ÷ (1 + rate of interest)^2 + Price at year 2 ÷ (1 + rate of interest)^2
= $1.81 ÷ 1.119 + $1.96 ÷ 1.119^2 + $92.855 ÷ 1.119^2
= $77.34
