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2 years ago

DIFFERENCE BETWEEN EQUITY SHARES AND PREFERENCE SHARES FOR 3 MARKS

Business

1 answer:

Dafna1 [17]2 years ago

8 0

Answer:

Equity Shares are the shares that carry voting rights and the rate of dividend also fluctuate every year as it depends on the amount of profit available to the company. On the other hand, Preference Shares are the shares that do not carry voting rights in the company as well as the amount of dividend is also fixed.

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Explanation:

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"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o

JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

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7 0

3 years ago

School Days Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units which are sold to public school sy

Blababa [14]

Answer:

Production Budget ( July August September) 5200, 6300, 9000

Sales Budget ( July August September) $ 300,000 $ 360,000 $ 450,000

Direct Materials Budget ( July August September) $ 31860 $ 39,420 $ 48,600

Direct Materials Units Budget ( July August September) 53,100 65,700 81,000

Direct Labor Budget ( July August September) $ 163,800 $ 198450 $ 283,500

Direct Labor Hours Budget ( July August September)7800 9450 13500

Explanation:

The formula used are

1) Production Budget = Sales + Desired Ending Inventory Less Opening Inventory

2) Sales Budget= Sales * Price Per unit

3) Raw Materials Budget = Production + Desired Ending Inventory Less Opening Inventory

Raw Materials Costs= Raw Materials Budget * Costs

4) Direct Labor Hours Budget = Production * Direct Labor Hours

Direct Labor Budget = Direct Labor Hours Budget* Wages Per Hour

School Days Furniture, Inc.

Production Budget

July August September

Sales 5000 6000 7500

+ Desired

Ending Inventory 1200 1500 ------(assuming zero inv)

Less Opening

Inventory 1000 1200 1500

Production Budget 5200 6300 9000 

Production Budget = Sales + Desired Ending Inventory Less Opening Inventory

School Days Furniture, Inc.

Sales Budget

July August September

Sales 5000 6000 7500

Price Per unit $ 60 $60 $ 60

Sales Budget $ 300,000 $ 360,000 $ 450,000 

Sales Budget= Sales * Price Per unit

School Days Furniture, Inc.

Raw Materials Budget

July August September

Production Budget 5200 6300 9000

+ Desired

Ending Inventory 630 900 ------(assuming zero inv)

Less Opening

Inventory 520 630 900

Materials Requiremnt 5310 6570 8100 

Board (feet) 10 10 10

Direct Materials 53,100 65,700 81,000

Plank Costs 0.60 0.60 0.60

Direct Materials $ 31860 $ 39,420 $ 48,600 

Raw Materials Budget = Production + Desired Ending Inventory Less Opening Inventory

Raw Materials Costs= Raw Materials Budget * Costs

School Days Furniture, Inc.

Direct Labor Budget

July August September

Production Budget 5200 6300 9000

Direct Labor hours 1.5 1.5 1.5

Direct Labor Hours 7800 9450 13500

Wages Per hour $ 21 $ 21 $21

Direct Labor Budget $ 163,800 $ 198450 $ 283,500

Direct Labor Hours Budget = Production * Direct Labor Hours

Direct Labor Budget = Direct Labor Hours Budget* Wages Per Hour

4 0

3 years ago

Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead

Juliette [100K]

Answer:

Applied overhead = $380,250

Under applied by = $71,750

Explanation:

Firstly, we know that the formula for overhead rate is ;

Overhead rate = Cost of manufacturing overhead/Cost driver

It also means that to get the predetermined overhead rate, the expected cost will be distributed along a cost driver. Hence;

Labor hours = $396,500/61,000 = $6.5

The above rate would then be applied to the actual labor hour for the period

= $58,500 × $6.5 = $380,250

It therefore means that the applied overhead for the period is $380,250

We will now compare the applied overhead with actual overhead

= $380,250 - $452,000

= ($71,750)

It means that the overhead was under applied as the actual overhead cost was higher.

3 0

3 years ago

Q2. Management is equally important to run a political organisation as it is to run an

Alex787 [66]

Answer:

Q2. B

Because a management is basically Base of separation of powers where all organs get work to do

Q3. A

Q4. B

8 0

3 years ago

A product sells for $250 per unit, and its variable costs per unit are $181. The fixed costs are $430,000. If the firm wants to

brilliants [131]

Answer:

$6600

Explanation:

Given: Selling price= $250 per unit

Variable cost= $181 per unit.

Fixed cost= $430000.

Expected Profit= $25400.

Let´s assume the number of units sold be "x".

Revenue (R) = $250\times x= \$250x$

Cost of product (C)= $\$ 181\times x+ \$ 430000$

∴ Cost of product (C)= $\$ 181x+ \$ 430000$

Now, finding the number of unit sold.

Forming an equation for profit.

We know, Profit= $Revenue-cost$

⇒ $\$ 25400= 250x- (181x+430000)$

Opening parenthesis.

⇒ $25400= 250x- 181x- 430000$

⇒ $25400= 69x- 430000$

Adding both side by 430000

⇒ $455400= 69x$

Dividing both side by 69

⇒ $x= \frac{455400}{69}$

∴ $x= 6600 units$

Hence, total number of units sold to earn $25400 is 6600 units.

6 0

3 years ago