Answer:
c. $820
Explanation:
The computation of the cost of unused capacity is given below:
But before that following calculations need to be done
The Predetermined overhead rate is
= Manufacturing overhead ÷ capacity of jointer
= $15,580 ÷ 380
= $41 per hour
Given that
Actual use of capacity = 360 hours
Now
Unused hours is
= 380 - 360
= 20 hours
And, finally the cost of unused capacity is
= 20 × $41
= $820
Answer:
Current price = $20.50
Explanation:
Data provided in the question;
Growth rate, g = 20% = 0.2 for the 2 years
Growth rate, g' = 15% = 0.15 for the following 2 years
after 4 years annual dividend = $3
Last dividend paid, D0 = $1
Required rate of return, r = 12% = 0.12
Now,
D1 = D0 × (1 + g)
= $1 × (1 + 0.2)
= $1.2
D2 = $1 × (1 + 0.2)²
D3 = $1 × (1 + 0.2)² × (1 + 0.15)
D4 = $1 × (1 + 0.2)² × (1 + 0.15)²
D5 = 3
Therefore,
Current price = 
+ 
+ 
+ 
+ 
⇒ Current price = $20.50
Answer:
Since Effie Corporation forfeited their stock subscription, then they will lose their stocks and the money they invested in Narda Corporation.
In this case, Narda was being completely acquired by Effie Corporation and the whole operation went down, then the initial payment must be recorded as additional paid in capital. It should not be included as part of operating income since it wasn't a normal business activity.
Yes it does. Unemployment is when a person isn't currently hired at a work pleace. If people are unemployed they are making no income so less people are in need of products so it lowers the demand.
