Answer:
$18.29
Explanation:
It is very simple as per the question to calculate the current stock price.
The formula for calculating the Stock price is,
P = D/(r-g)
Hence, we calculate as follows,
Price = 0.75/(0.105-0.064)
Price = 0.75/0.041
Price = $18.29
Good Luck.
Answer:
Cyclical Unemployment
Explanation:
Cyclical Unemployment occurs due to irregularities surrounding an economy and these said cycles eventually brings about recession and thus, a good number of willing workers would not be able to get jobs due to this fact. What Joseph is experiencing is called Cyclical unemployment.
Contribution margin
Pretax income
(2) Compute the number of units expected to be sold next period.
Choose Numerator: / Choose Denominator: = Units
/ = Units
Answer and Explanation:
1. The computation of the total expected dollar sales for next period is given below:
Sales $4,410,000
Less: variable cost $1,764,000
Contribution margin $2,646,000
Less: fixed cost $2,364,000
Pre tax income $282,000
2. The number of units that should be sold is
= $2,646,000 ÷ $63 per unit
= 42,000 units
In this way it should be calculated
Answer:
c. auditors and financial statement users.
Explanation:
This is because, the auditors and the financial statement users tends to have different views on what their responsibilities are. Since their views differs, their tend to be a gap which occurs. This gap is called audit expectation gap. This could be minimized through self regulating auditing of the financial statement before the final auditing by auditors.
Cost of Direct Labor wages: $37,500
Variable Manufacturing Overhead: $25,000
Fixed Manufacturing Overhead: $125,000
Total units produced: 10,000
Under absorption costing what was the per-unit cost of the units produced?
a. None of the above
b. $23.75
c. $12.50
d. $11.25
e. $8.75
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Cost of Direct Materials used in production: $50,000
Cost of Direct Labor wages: $37,500
Variable Manufacturing Overhead: $25,000
Fixed Manufacturing Overhead: $125,000
Total units produced: 10,000
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the total cost:
Total cost= 50,000 + 37,500 + 25,000 + 125,000
Total cost= $237,500
Now, the unitary cost:
Unitary cost= 237,500/10,000= $23.75
b. Depreciation Expense
c. Retained Earnings
d. Income Tax Expense.
Answer: c. Retained Earnings
Explanation:
The post-closing trial balance reflects balance sheet items that do not have a $0 balance in them when a period has ended and is prepared after the temporary accounts have been closed off. The purpose is to make sure that the debits equal the credits.
As there are no temporary accounts, all income statement items will have been closed off and moved to the Retained earnings account which will reflect the total for the income statement for the year. The only account that will be listed in the post-closing trial balance therefore will be the Retained earnings account.
Answer:
Annuity due would be be chosen.
Explanation:
Let us assume the similar annual interest rate is 10%.
To decide which to choose, the present values of the two annuities are calculated and compared as follows:
1. For annuity due
Under an annuity due, payments are made to investors at the beginning of each time period. The present value of an annuity due can be calculated as follows:
PVd = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] × (1+r) .................. (1)
Where;
PVd = Present value of an annuity due = ?
P = Annual payment = $1,000
r = interest rate = 10%, or 0.10
n = number of years = 20
Substituting the values into equation (1) above, we have:
PVd = $1,000 × [{1 - [1 ÷ (1 + 0.10)]^20} ÷ 0.10] × (1 + 0.10) = $9,364.92
2. For ordinary annuity
Under an ordinary annuity, payments are made to investors at the end of each time period. The present value of an ordinary annuity can be calculated as follows:
PVd = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] .................. (2)
Where
PVo = Present value of an ordinary annuity = ?
P = Annual payment = $1,000
r = interest rate = 10%, or 0.10
n = number of years = 20
Substituting the values into equation (1) above, we have:
PVo = $1,000 × [{1 - [1 ÷ (1 + 0.10)]^20} ÷ 0.10] = $8,513.56
3. Decision
Since the present value (PV) of the annuity due of $9,364.92 is greater than the PV of ordinary annuity of $8,513.56, annuity due would be be chosen.