Answer: See explanation
Explanation:
The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:
= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate
= 2.00/[20.00 × (1 - 4.5%)] + 4.2%
= 2.00 /[20.00 × (1 - 0.045)] + 0.042
= 2.00 / (20.00 × 0.955) + 0.042
= (2.00/19.10) + 0.042
= 0.104712 + 0.042
= 0.146712
New cost of equity = 14.67%
You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%
The Consumer Electronics Show (CES) reports that the HP Spectre laptop computer starts at $994.00 for a base configuration. The model displayed at its recent show costs $1,353, $118 more than the comparable 13-inch Apple MacBook Air. If Computers-R-Us buys the HP Spectre at the show with 3/15, net 30 terms on August 26, how much does it need to pay on September 9
Answer: $1312.41
Explanation:
The following information can be depicted from the question:
Cost of HP Spectre laptop = $1353
Credit terms = 3/15, net 30
Therefore, since discount allowed is 3%, the complement of the discount rate will be:
= 100% - 3%
= 97%
Therefore, amount needed to pay will be:
= Listed price × Complement of discounts rate
= $1353 × 97%
= $1353 × 0.97
= $1312.41
Therefore, the amount needed to pay is $1312.41
Alamo Power historically allocates IDC for its safety program to generation facilities in Cities A and B based on the number of employees. Last year, $300,000 was distributed and the employee count was 840 in city A and 450 in city B. Implementation of the ABC method took place this year to allocate IDC on the basis of number of accidents. City A reported 345 events and city B had 142 accidents reported.
Determine the allocation based on the number of employees. The allocation based on the number of employees is as follows:
City A:________
City B: _______
Answer:
Alamo Power
Allocation of IDC cost based on the number of employees:
City A = $195,349
City B = $104,651
Explanation:
a) Data and Calculations:
IDC cost = $300,000
City A City B Total
Employee count 840 450 1,290
Number of accidents 345 142 487
Allocation of IDC cost based on the number of employees:
City A = 840/1,290 * $300,000 = $195,349
City B = 450/1,290 * $300,000 = $104,651
Total cost allocated = $300,000
Allocation of IDC cost based on the number of accidents:
City A = 345/487 * $300,000 = $212,526
City B = 142/487 * $300,000 = $87,474
art of the screening process when choosing which markets to expand to involves gathering information on local markets. One way to gain information is by participating in trade fairs and trade missions. However, companies will often need additional information on markets that require further research. Collecting primary data in foreign markets can present some challenges in researchers especially because of cultural and technical differences between the markets. Identify whether each statement about the research process is most likely associated with cultural differences between markets or technical differences. 1. A number of languages may be spoken in a country and even in countries where only one language is used, a word's meaning can change from one region to the next.
Answer:
1. Cultural differences between markets.
Explanation:
There are many language across the world. There are even many languages spoken in a single country. People living in one region will speak different language than those who live in other nearby region of the same country. The meanings of many words also changes in different languages. The word of English language have some meaning and same words may have different meaning in other languages.
Soprano Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow. Department 1 Department 2 Total Short-run usage (hours) 80,000 120,000 200,000 Long-run usage (hours) 90,000 110,000 200,000 If Soprano uses dual-cost accounting procedures and fixed administrative costs total $1,000,000, the amount of fixed administrative costs to allocate to Department 1 would be:
Answer:
$850,000
Explanation:
Total Hours of Department 1=$80,000+$90,000
=$170,000/$200,000*1000,0000
The chapter explained why exporters cheer when their home currency depreciates. At the same time, domestic consumers find that they pay higher prices, so they should be disappointed when the currency becomes weaker. Why do the exporters usually win out, so that governments often seem to welcome depreciations while trying to avoid appreciations? (Hint: Think about the analogy with protective tariffs.)
Answer:
Exporters usually win out when their home currency depreciates because it increases demand for the exported products.
Explanation:
The foreign consumers find that the prices of the imports are now reduced because of the depreciation of the exporting nation's currency. The impact is reduced cost of importation for the importing consumers. When prices fall, demand tends to increase relative to supply. For any government that wants to encourage exports for earning foreign exchange, it will always work hard to avoid currency appreciation so that consumers from the importing nation are not discouraged or made to develop alternatives.
Exporters usually win out when their home currency depreciates because the depreciation increases the demand of the exported products.
When the prices fall, demand of the products and goods tend to increase. When the home currency depreciates, this will leads to higher demand of goods from other countries so the exporters produce and exports more goods and earn more money.
The government also wants to encourage exports in order to earn foreign exchange so that's why the exporters as well as the government cheers when their home currency depreciates.
Learn more about currency depreciation: https://brainly.com/question/16051120
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Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,400 every six months over the subsequent eight years, and finally pays $2,700 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 6% compounded semi-annually. What are the current price of bond M and bond N?
Answer:
um
Explanation:
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $2,200,000 has an estimated residual value of $400,000 and an estimated useful life of 20 years. Determine the following: (a) The depreciable cost $fill in the blank 1 (b) The straight-line rate fill in the blank 2 % (c) The annual straight-line depreciation $fill in the blank 3
Answer:
a)
Depreciable Cost = $ 1800000
b)
Straight Line Depreciation Rate = 5%
c)
Depreciation expense per year = $90000
Explanation:
a)
The depreciable cost is the cost that qualifies for depreciation. It is calculated as,
Depreciable Cost = Cost - Salvage Value
Depreciable Cost = 2200000 - 400000
Depreciable Cost = $ 1800000
b)
The straight line depreciation method charges a constant depreciation expense every period. The rate of straight line depreciation can be calculated as follows,
Straight Line Depreciation Rate = Depreciable cost percentage / Estimated useful life
Straight Line Depreciation Rate = 100% / 20
Straight Line Depreciation Rate = 5%
c)
The annual straight line depreciation expense can be calculated as follows,
Depreciation expense per year = Depreciable cost * Straight line depreciation rate
Depreciation expense per year = 1800000 * 0.05
Depreciation expense per year = $90000
Resources do not limit the number of needs and wants people
can
satisfy.
True or False
Answer:
False
Explanation:
Resources absolutely limit what can be accomplished and done. Just think of the timber industry. They want to cut down all trees they can to make a profit, but society needs to preserve natural forests so their cutting is limited.
Answer:
false
Explanation:
resources is a source that is generate form nature. the resources satisfy the wants because is the will no resource like - chair , table, food( that we cook) etc. we can't survive in this world. some examples for reading in school tables, chair are made form wood, which is a source .
Which Finance jobs can someone pursue with only a high school diploma? Check all that apply.
Tax Preparer
Treasurer
Actuary
Teller
Loan Officer
Quantitative Analyst
Answer:
Actuary, Tax Preparer and Loan Officer
Answer:
A, C, and E
Explanation:
Actuary, Tax Preparer and Loan Officer
Carol and Dave each purchase 100 shares of stock of Burgundy, Inc., a publicly owned corporation, in July for $10,000 each. Carol sells her stock on December 31 for $8,000. Because Burgundy’s stock is listed on a national exchange, Dave can ascertain that his shares are worth $8,000 on December 31. Does the Federal income tax law treat the decline in value of the stock differently for Carol and Dave? Explain.
Answer:
See below
Explanation:
From the above information, we can deduce that the stock owned by Carol and Dave falls in value by $2,000 I.e ($10,000 - $8,000) ; it is to be noted that Carol solely has realised and recognized loss of $2,000.
Here, one of the cogent factors that determines whether a sale has taken place is if realization has been effected. Here, stock sold by Carol qualifies as a disposition while the decline in the value of stock sold by Dave does not qualify as disposition.
With regards to the foregoing, we can conclude that the federal income tax law treat the decline in the value of the stock differently for Carol and Dave.
Exercise 07-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,850 units during the second quarter. Other information is as follows: Direct labor Each finished unit requires 6 direct labor hours, at a cost of $9 per hour. Variable overhead Applied at the rate of $11 per direct labor hour. Fixed overhead Budgeted at $640,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.
Answer:
See below
Explanation:
1. Total Direct labor
Addison Co.
Direct labor budget for second quarter
Budgeted production units 2,850
Direct labor hour per one unit 6
Total direct labor hours needed 17,100
Cost per one direct labor $9
Total direct labor $153,900
2. Total factory overhead budget
Addison Co. Factory overhead for second quarter
Total direct labor hours needed 17,100
Variable rate per direct labor hour $11
Budgeted variable overhead $188,100
Budgeted fixed overhead $640,000
Total factory overhead $828,100
Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $34 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $10.
Further assume Sanmina-SCI offers to sell Hewlett-Packard the 12,000 circuit boards for $34 each.
If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $46,000 per year.
In addition, $6 per unit of the fixed overhead applied to the circuit boards would be totally eliminated.
Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI.
(Use a negative sign with your answer, if appropriate.)
Answer:
The net benefit is -$26,000
Explanation:
Given the above information,
The total cost of manufacturing 12,000 circuit boards
= 12,000 × $34
= $408,000
Total purchase price
= 12,000 × $34
= $408,000
Fixed overhead cost applied
= 12,000 × $6
= $72,000
The rental income = $46,000
Outsourcing cost
= Total purchase price + Fixed overhead cost applied - Rental income
= $408,000 + $72,000 - $46,000
= $434,000
Therefore, Net benefit
= Total cost of manufacturing - Outsourcing cost
=$408,000 - $434,000
= -$26,000
Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,000 shares of its own common stock at $35 per share on October 11. Sold 1,250 treasury shares on November 1 for $41 cash per share. Sold all remaining treasury shares on November 25 for $30 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.
Answer:
Revised Equity Section of Balance Sheet After October 11
Common Stock at par $820,000
Paid-in capital in excess of Par $266,000
Total Contributed Capital $1,086,000
Retained earnings $ 944,000
Total $2,030,000
Less: Treasury Stock ($ 210,000)
Total Stockholder's Equity $1,820,000
Treasury stock = 6,000 * 35
= $210,000
Which pathway includes the most self-employed workers?
Banking Services
Insurance Services
Financial and Investment Planning
Business Financial Management
Answer:
The Answer is B
Explanation:
Im sure its B
The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr Company follows:
Beginning raw materials inventory $27,000
Ending raw materials inventory 30,000
Raw material purchases 104,000
Beginning work in process inventory 39,000
Ending work in process inventory 49,000
Direct labor 129,000
Total factory overhead 104,000
Beginning finished goods inventory 79,000
Ending finished goods inventory 59,000
The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:________
Answer:
Results are below.
Explanation:
First, we need to calculate the direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 27,000 + 104,000 - 30,000
Direct material used= $101,000
Now, the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 39,000 + 101,000 + 129,000 + 104,000 - 49,000
cost of goods manufactured= $324,000
Finally, the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 79,000 + 324,000 - 59,000
COGS= $344,000
Tex's Manufacturing Company can make 200 units of a necessary component part with the following costs: Direct Materials $240,000 Direct Labor 35,000 Variable Overhead 75,000 Fixed Overhead 40,000 If Tex's Manufacturing Company can purchase the component externally for $330,000 and only $15,000 of the fixed costs can be avoided, what is the correct make-or-buy decision
Answer:
Buy and save $35,000
Explanation:
The computation is shown below:
Particulars Make Buy
Direct Materials $240,000
Direct Labor $35,000
Variable Overhead $75,000
Fixed Overhead $15,000
Purchase cost $330,000
Total cost $365,000 $330,000
As we can see that the buying total cost is less than the total making cost so here we can buy the product as it saves the company by $35,000 ($365,000 - $330,000)
C Corporation is investigating automating a process by purchasing a machine for $808,200 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $141,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,800. The annual depreciation on the new machine would be $89,800. The simple rate of return on the investment is closest to (Ignore income taxes.): Multiple Choice 11.28% 5.28% 6.52% 16.88%
Answer:
6.52%
Explanation:
According to the scenario, computation of the given data are as follows,
New machine cost = $808,200
Scrap sold = $22,800
Cost of investment = $808,200 - $22,800 = $785,400
Saving from new machine = $141,000
Annual depreciation of machine = $89,800
Net operating income = $141,000 - $89,800 = $51,200
Now we can calculate the rate of return by using following formula,
Simple rate of return = Net operating income ÷ Cost of Investment
= $51,200 ÷ $785,400
= 6.52%
Leto Company manufactures a certain type of alloy. The alloy undergoes a hardening process. The hardening unit is operating at full capacity and is a production constraint. The unit contribution margin and the number of hours of hardening treatment used by the alloy are as follows: Unit selling price$96.80 Unit variable cost(23.50) Unit contribution margin$73.30 Hardening treatment hours per unit5 hrs. Assuming Leto produces 2,300 units of the alloy, calculate the unit contribution margin per production constraint hour.
Answer:
Leto Company
The unit contribution margin per production constraint hour is:
= $0.00637.
Explanation:
a) Data and Calculations:
Unit selling price = $96.80
Unit variable cost = (23.50)
Unit contribution margin = $73.30
Hardening treatment hours per unit = 5 hours
Units of alloy produced = 2,300
Total hours spent on hardening treatment = 11,500 (5 * 2,300)
Contribution margin per production constraint hour = Unit contribution margin/Total hours spent on hardening treatment
= $0.00637 ($73.30/11,500)
b) The unit contribution margin per production constraint hour shows the contribution margin that is made per unit of the production constraint. The production constraint is the limited input resources that are available for production. It is a product of the units of the alloy that Leto produces and the number of hours required to produce one unit.
Joyce works hard and puts in many extra hours. For this, she can anticipate a pay raise, a promotion, or an expanded sales territory. However, getting a promotion is most important to Joyce. According to the useful guidelines of the ____ theory, Jim, her manager, must recognize that (1) she is putting in hard work and long hours to obtain a promotion, (2) what motivates Joyce will change over time, and (3) he must clearly show Joyce how to attain the desirable reward.
Answer:
Expectancy theory
Explanation:
Expectancy theory states that when an individual is faced with different choices they will be motivated in a certain way in choosing a particular option based on what they expect to be the result of the choice.
So behaviour is affected by perceived result or consequence of a particular choice.
In the given scenario Joyce works hard and puts in many extra hours, and getting a promotion is most important to Joyce.
So because of her expectations that manager must recognise that:
(1) she is putting in hard work and long hours to obtain a promotion,
(2) what motivates Joyce will change over time (if she does not get the promotion), and
(3) he must clearly show Joyce how to attain the desirable reward.
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows:
Book Value FairValue
Current assets $ 6,000,000 $7,500,000
Property, plant, and equipment 11,000,000 14,000,000
Other assets 1,000,000 1,500,000
Current liabilities 4,000,000 4,000,000
Long-term liabilities 6,000,000 5,500,000
Required:
Calculate the amount paid for goodwill.
Answer:
the amount paid for goodwill is $3,500,000
Explanation:
The computation of the amount paid for goodwill is given below
But before that the net fair value of assets would be determined
Net fair value of assets purchased is
= ($7,500,000 + $14,000,000 + $1,500,000) - ($4,000,000 + $5,500,000)
= $13,500,000
Now Amount paid for goodwill is
= $17,000,000 - $13,500,000
= $3,500,000
Hence the amount paid for goodwill is $3,500,000
A NOW account requires a minimum balance of $750 for interest to be earned at an annual rate of 4 percent. An account holder has maintained an average balance of $500 for the first six months and $1,000 for the remaining six months. The account holder writes an average of 60 checks per month and pays $0.02 per check, although it costs the bank $0.05 to clear a check.
Required:
a. What average return does the account holder earn on the account?
b. What is the average return if the bank lowers the minimum balance to $400?
c. What is the average return if the bank pays interest only on the amount in excess of $400? Assume that the minimum required balance is $400.
d. How much should the bank increase its check fee to the account holder to ensure that the average interest it pays on this account is 5 percent? Assume that the minimum required balance is $750.
Answer:
a. Average return = 5.55%
b. Average return = 6.88%
c. Average return = 4.75%
d. Bank increase per check fees = $.0257
Explanation:
a.)
Interest earned on first $500 = $500×0×6 / 12 = $0
Interest earned on next $1000 = $1000×0.04×6 / 12= $20
Now,
Fees earned on checks = ($.05 - $.02)×60×12 = $21.6
So,
Total interest earned = $20 + $21.6 = $41.6
Given,
Average balance maintained = $750
So,
Average return = $41.6 / $750 = 5.55%
b.)
Interest earned on first $500 = $500×0.04×6 / 12 = $10
Interest earned on next $1000 = $1000×0.04×6 / 12 = $20
Now,
Fees earned on checks = ($.05 - $.02)×60×12 = $21.6
So,
Total interest earned = $10 + $20 + $21.6 = $51.6
Given that,
Average balance maintained = $750
So,
Average return = $51.6 / $750 = 6.88%
c.)
Interest earned on first $100 = $100×0.04×6 / 12 = $2
Interest earned on next $600 = $600×0.04×6 / 12 = $12
Now,
Fees earned on checks = ($.05 - $.02)×60×12 = $21.6
So,
Total interest earned = $2 + $12 + $21.6 = $35.6
Given that,
Average balance maintained = $750
So,
Average return = $35.6 / $750 = 4.75%
d.)
Total interest earned = $750×0.05 = $37.5
So,
fees earned on checks = $37.5 - $20 = $17.5
Subsidiary per check = $17.5 / 60×12 = $.0243
So,
Bank increase per check fees = $.05 – $.0243 = $.0257
Ingraham Inc. currently has $820,000 in accounts receivable, and its days sales outstanding (DSO) is 54 days. It wants to reduce its DSO to 35 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year.
Answer: 451759.29
Explanation:
To solve the question, we need to calculate the current sales. This will be calculated by using the formula:
DSO = (Account receivable × 365) / Sales
54 = 820000 × 365 / Sales
Sales = 820000 × 365 / 54
Sales = 5542593
After the new policy, the expected sales will be:
= 5542593 × (1 - 15%)
= 5542593 × (1 - 0.15)
= 5542593 × 0.85
= 4711204.5
The level of accounts receivable following the change will be:
DSO = (Account receivable × 365) / Sales
35 = Account receivable × 365 / 4711204.5
Account receivable = 35 × 4711204.5 / 365
Account receivable = 451759.29
Define four functions of managenet
Answer:
The answer is below
Explanation:
The Four functions of management are:
1. Planning: this is the process of setting out a plan by the management team that involves the goals and the template or means to achieve those goals.
2. Organizing: this is a process of organizing the resources; both human and material resources, that are deemed essential to the realization of the set out plans or goals.
3. Leading: this is a process of ensuring all the team members work together to achieve the main goals or set out plans.
4. Controlling: this is a process that involves constant checking, evaluation, and monitoring activities to ensure the ongoing performance meets the actual plans and will eventually yield to the goal.
Which of the following statements regarding SPT and WSPT is INCORRECT?
a. SPT always assigns the highest priority to the job to lowest processing time.
b. SPT does not consider the weight differences among different jobs.
c. WSPT may not assign the highest priority to the job with the highest weight because it also considers the processing time information.
d. WSPT assigns the highest priority to the job with the LOWEST weight/processing time ratio.
Answer:
D
Explanation:
WSPT assigns the highest priority to the job with the LOWEST weight/processing time ratio.
What to do most careers in Finance deal with?
a) real estate and education
b) assets and liabilities
c) assets and retail
d) real estate and retail
Answer:
b
Explanation:
B)
Answer: B would be the answer
Explanation: assist and liabilities
An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the year: DateValue Immediately Before DepositDeposit March 154020 June 18080 October 117575 On June 30, the value of the account is 157.50. On December 31, the value of the account is X. Using the time-weighted method, the equivalent annual effective yield during the first 6 months is equal to the (time-weighted) annual effective yield during the entire 1-year period. Calculate X.
Answer:
236.25
Explanation:
Calculation to determine X
First step is to calculate the 6 months Yield
6 month Yield=(40/40+20) (80/40+20) (157.60/80+80)+1)
6 month Yield=(40/60) (80/60) (157.60/160)-1
6 month Yield=5%
Second step is to calculate the Annual equivalent
Annual equivalent=(1.05)^2-1
Annual equivalent=10.25%
Third step is to calculate the 1 year yield
1 year yield=(40/50) (80/40+20) (175/80+80) (x/175+75)
1 year yield=(40/50) (80/60) (175/160) (x/250)-1
1 year yield=0.1025
Now Let calculate X
x(0.004667)=1+.1025
x(0.004667)=1.1025
x=1.1025/0.004667
x=236.25
Therefore X is 236.25
Given the description of the firm below, decide whether it applies to monopolistic competition, perfect competition, or both.
a. a firm that produces with excess capacity in the long run
b. a firm that has market power
c. a firm that sets greater than marginal
d. a firm that earns zero economic profit in the long
Answer:
Perfect Competition
d. a firm that earns zero economic profit in the long
In the long run, firms will keep entering and exiting the market in a perfect competition such that there will be no economic profit to be gained.
Monopolistic Competition
a. a firm that produces with excess capacity in the long run
b. a firm that has market power
c. a firm that sets price greater than marginal cost.
Monopolistic competition has excess capacity in the long run because their prices are set at a higher level than the marginal revenue. They are therefore producing more goods than they are selling leading to excess capacity.
Monopolistic competition has some form of market power as well because they get to set their own prices.
what is the role of the prosecutor in a civil case
A prosecutor is a legal representative of the prosecution in countries with either the civil case inquisitorial system, they represents the government in the case brought against the accused person
Answer:
same as the answer of her/him
Explanation:
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Calculate the annual cash dividends required to be paid for each of the following preferred stock issues:
Required:
a. $3.30 cumulative preferred, no par value; 210,000 shares authorized, 146,000 shares issued. (The treasury stock caption of the stockholders' equity section of the balance sheet indicates that 40,653 shares of this preferred stock issue are owned by the company.) (Round your answer to 2 decimal places.)
b. 5%, $40 par value preferred, 293,000 shares authorized, 165,000 shares issued, and 72,725 shares outstanding. (Round your answer to 2 decimal places.)
c. 12.2% cumulative preferred, $100 stated value, $108 liquidating value; 81,000 shares authorized, 42,000 shares issued, 26,000 shares outstanding.
Answer:
Annual Cash Dividends
a. = $347,645.10
b. = $145,450
c. = $317,200
Explanation:
a) Data and Calculations:
1. $3.30 Cumulative Preferred Stock:
Authorized shares = 210,000
Issued shares = 146,000
Treasury shares = 40,653
Outstanding shares 105,347
Cash dividend = $347,645.10 ($3.30 * 105,347)
2. 5% Preferred Stock, $40 par value:
Authorized shares = 293,000
Issued shares = 165,000
Outstanding shares 72,725 * $40 = $2,909,000
Cash dividend = $145,450 ($2,909,000 * 5%)
3. 12.2% cumulative preferred, $100 stated value, $108 liquidating value:
Authorized shares = 81,000
Issued shares = 42,000
Outstanding shares 26,000 * $100 = $2,600,000
Cash dividend = $317,200 ($2,600,000 * 12.2%)
The following data relate to Ramesh Company’s defined benefit pension plan: ($ in millions) Plan assets at fair value, January 1 $ 780 Expected return on plan assets 78 Actual return on plan assets 62 Contributions to the pension fund (end of year) 136 Amortization of net loss 16 Pension benefits paid (end of year) 23 Pension expense 108 Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.
Answer:
$955 million
Explanation:
Calculation to Determine the amount of pension plan assets at fair value on December 31
(millions)
Plan Assets Beginning of the year $780
Actual return $62
Cash contributions $136
Less: Retiree benefits($23)
End of the year pension plan assets $955
Therefore the amount of pension plan assets at fair value on December 31 is $955 million