Answer:
1) $6.32
2) $7.50
3) $6.65
4) $7.35
The correct option is the second one ,$7.50
Explanation:
The value of operations is $1,000
If dividends of $50 million is paid,such cash would be paid would be gotten from short-term investments of $100 million since it is easily convertible to cash without losing a significant portion of its value,hence the short term investments reduce to $50 million
$ million
Value of operations $1000
plus value of non-operating assets $50
Value of firm $1050
less value of debt ($300)
Intrinsic value of the firm $750
Intrinsic value of share=$750/100=$7.5
The intrinsic value per share is the total value attributable to common stock divided by the number of common stock in issue.
Answer:
A. more information should be gathered before deciding on which project, if either, is desirable.
Explanation:
The lower Payback Period is not sufficient information to decide which project is more profitable. The payback period indicates when in the life of a project the initial investment principal cash flow is achieved.
But to decide about a certain project it is better to know the interest yield, it is also important to get the life of the project and other information.
For example:
a.- 250 investment 100 per year payback in 2.5-year life 3 years
b.- 500 investment 100 per year payback in 5-year life 20 years
While A payback occurs before project B is better
Answer:
Explanation:
The journal entry is shown below:
Bonds Payable A/c Dr. $1,500,000
Loss on Redemption of Bond A/c Dr. $25,100
To Discount on Bonds Payable A/c $70,100
To Cash A/c $1,455,000
(Being the redemption of the bond is recorded)
The loss on redemption of bond would be
= $1,455,000 + $70,100 - $1,500,000
= $25,100
a. classical theory.
b. Keynesian theory.
c. new classical theory.
d. monetarist theory.
Answer:
c. new classical theory.
Explanation:
The new classical theory belives that grow, countries must open their economies, entrepreneurial development (risk taking), privatize state owned enterprises, and reform labor markets, such as by decreasing the authority of trade unions.
Moreover it also focused that there is no effect on the employment and the result or outcome as individuals recognized the policies in the correct way so that it helps to anticipate them
Hence, the third option is correct
Answer:
Mechanization
Explanation:
When a ware house is being setup, the aim is to get an efficient one that can service demand in a timely manner.
In order to minimise cost and maximise efficiency there is need to space, labour, and mechanisation that will be used on the production process.
Various analysis like capacity analysis and equipment analysis are carried out to ensure fast and cheap operation of the warehouse.
Inefficient warehouse designs leads to delay in service delivery and extra cost to the business.
Answer:
A) are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
Explanation:
Debt contracts are formed when a borrower agrees to repay a lender. Convenants are usually used to settle disputes between the borrower and the lender. Convenants limits the the extent to which debtors take risks, dividend payouts, claim dilution, and other activities that can cause the lender to lose money.
Debt contracts are obtained by businesses to finance short term operations activities or long term expansion plans.
Answer: A) are agreements by the borrowers to pay the lenders fixed dollar amounts at periodic intervals.
Explanation: A debt contract is an agreement in which a borrower agrees to repay funds borrowed to a lender. Usually classes into a short-term and long-term debt contracts, they are used in raising money for working capital or capital expenditures and in return for lending the money, the individuals or institutions become creditors and receive a promise that the capital and interest on the debt will be repaid (usually in fixed amounts over a period of time) in accordance with the terms of the contract. Debt contracts include detailed provisions on collateral involved, interest rate, the schedule for interest payments, and the timeframe to maturity if applicable.
Answer:
Total cost= $6,267
Explanation:
Giving the following information:
Direct Materials $3,405
Direct Labor Hours 50 labor hours
Direct Labor wage rate $13 per labor hour
Machine Hours 158
The predetermined overhead rate is $14 per machine-hour.
To calculate the total cost, we need to use the following formula:
Total cost= direct material + direct labor + allocated overhead
Total cost= 3,405 + 13*50 + 14*158
Total cost= $6,267
The total cost recorded on the job cost sheet for Job 607 would be $6,267, as calculated by summing the cost of direct materials, direct labor, and applied manufacturing overhead.
To calculate the total cost that would be recorded on the job cost sheet for Job 607, you must add up all the individual costs associated with the job. This includes the direct materials, direct labor, and applied manufacturing overhead costs.
Direct materials are already given as $3,405. Direct labor can be calculated by multiplying the labor hours by the wage rate ($13 * 50), which gives $650. The manufacturing overhead is calculated by multiplying the machine hours by the predetermined overhead rate (158 * $14), which comes out to $2,212.
So, the total cost for Job 607 is the sum of all these, that is, $3,405 + $650 + $2,212 = $6,267. Thus, $6,267 would be the total cost recorded for Job 607 on the job cost sheet.
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