Match the definitions to the terms.

Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A

wariber [46]

Answer:

$18.15

Explanation:

Activity based costing is a costing techniques used to assign cost in management account to the various units of a company the estimated activity level in the departments as a basis for cost apportionment or allocation.

Given that

Cost Pool Total Cost Product A Product B Total Activity

Activity 1 $ 18,000 700 300 1,000

Activity 2 $ 24,000 500 100 600

Activity 3 $ 60,000 800 400 1,200

The total cost for product A

= 700/1000 * $18,000 + 500/600 * $24,000 + 800/1200 * $60000

= $12,600 + $20,000 + 40,000

= $72,600

Total units for A = 4000 units

cost per unit of Product A is closest to

= $72,600/4000

= $18.15

5 0

3 years ago

at is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Ye

dybincka [34]

Answer:

a. Horizon Value = $856 million

b. Firm’s value today = Value of Firm = $641.61 million

c. Current Price per Share = $32.72

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dantzler's WACC is 12%.

Year FCF ($ millions)

0 -

1 -$18

2 $25

3 $40

a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. million

b. What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations. million

c. Suppose Dantzler has $20 million of debt and 19 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250.

The explanation of the answers is now given as follows:

a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. million

Horizon Value = Year 3 FCF * (100% + Constant growth rate) / (WACC – Constant growth rate) = $40 * (100% + 7%) / (12% - 7%) = $856 million

b. What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations. million

Value of Firm = (Year 1 FCF /(100% + WACC)^1) + (Year 2 FCF / (100% + WACC)^2) + ((Year 3 FCF + Horizon value) / (100% + WACC)^3)

Value of Firm = (-18/(100%+12%)^1+(25/(100%+12%)^2)+((856+40)/(100%+12%)^3))

Value of Firm = $641.61 million

c. Suppose Dantzler has $20 million of debt and 19 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250.

Current Price per Share = (Value of Firm – Debt) / Number of shares of stock outstanding = (641.61 - 20) / 19 = $32.72

7 0

3 years ago

Which combination of fiscal policy actions would most likely be offsetting?  A. Increase taxes and government spending B. Decrea

Delvig [45]

Answer: Option (A) is correct.

Explanation:

When there is an increase in both the components of aggregate demand i.e. government spending and taxes then this will most likely to offset the fiscal policy actions.

If there is an increase in the taxes, as a result aggregate demand decreases because of lower disposable income. This policy action is known as Contractionary fiscal policy.

Whereas, if there is an increase in the Government spending, as a result aggregate demand increases. This policy action is known as Expansionary fiscal policy.

But this will also largely depend upon the tax multiplier and government spending multiplier.

7 0

3 years ago

A budget: A. is an aid to coordinate what needs to be done B. is the quantitative expression of a proposed plan of action by ma

vfiekz [6]

Answer:

D. All of the above are correct.

Explanation:

A budget is a proposed plan that outlines the financial and nonfinancial statement.

The main objective of the budget:

To make a goal for future plans.

To set strategies to achieve a present objective.

To reduce the inequalities in the wealth.

The importance of the budget in business is that making a proper budget helps the owner to plan and manage the finances of the company and help to improve the profits.

8 0

3 years ago

What is the Internet?

VLD [36.1K]

Answer:

A: A collection of computers that are linked together

Explanation:

4 0

3 years ago

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