Answer:
A) $1.82
Explanation:
the dividends discount model is used to determine the value of stock given the distributed dividends and the required rate of return:
current dividend $0.20 per stock
dividends year 1 = $0.23 per stock
dividends year 2 = $0.2645 per stock
dividends year 3 = $0.3042 per stock
dividends year 4 = $0.35 per stock
after year 4, we need to calculate the growing perpetuity = dividend / (return rate - growth rate) = $0.35 / (17.4% - 2.5%) = $0.35 / 14.9% = $2.35
now we must find the present value of the cash flows:
PV = $0.23/1.174 + $0.2645/1.174² + $0.3042/1.174³ + $0.35/1.174⁴ + $2.35/1.174⁵ = $0.1959 + $0.1919 + $0.188 + $0.1842 + $1.0537 = $1.82
Answer:
top management's attitude toward decentralized operating structures.
Explanation:
Answer:
total equivalent units for materials = 6,310
Explanation:
700 units in beginning work in process:
- materials: 70% complete, $8,700, completed 490 equivalent units, not completed 210 units
- conversion: 10% complete, $3,700
units started in to production 6,400
units transferred out 5,600
ending work in process 1,500
- materials: 80% complete, completed 1,200 equivalent units for materials
- conversion: 25% complete
materials added $92,200
conversion costs added $269,600
equivalent units for materials:
- beginning WIP equivalent units to be completed = 210
- units started and completed = 5,600 - 700 = 4,900
- ending WIP = 1,200 equivalent units
- total equivalent units for materials = 6,310
Answer:
$18,500
Explanation:
The first in first out (FIFO) inventory system assumes that It is the first purchased inventory that is the first to be sold.
Total inventory sold = 175 + 50 = 225 units
The first 50 units would be taken from the beginning inventory which costs $80. Total cost of 50 units of inventory would be $80 × 50 = $4,000
This leaves 75 units of the beginning inventory.
The 175 units sold would be taken from the remaining 75 units of the beginning inventory and the 270 units purchased
75 × $80 = $6,000
100 x $85 = $8500
Total cost of goods sold = $6,000 + $8500 + $4,000 = $18,500
I hope my answer helps you
