Answer:
Jameson's current stock price, P0 is $18.62
Explanation:
Required rate of return = Risk free rate + Beta*Market risk premium.
= 4.00% + 1.15*5.00 %
= 9.75 %
Current stock price, P0
= Expected dividend per share/(Required rate of return - Growth in dividends)
= (0.75 + 5.50%*0.75)/(0.0975 - 0.055)
= $18.62
Therefore, Jameson's current stock price, P0 is $18.62
Answer:
The correct answer is letter "D": All of the answers are correct regarding a petty cash fund.
Explanation:
Petty cash funds are sums of money that are useful for businesses to take care of small payments. These payments are too low to allow a check to be written for payment. In some businesses, each department maintains its own small cash box for expenses such as office supplies per unit.
For accounting purposes, transactions involving petty cash are documented only when the petty cash was totally spent and a new fund is to be created and recorded with a voucher.
If he was the first to say he wanted the product and the seller wants to sell it as fast as possible than yes. But not technically it would be a kind of verbal understanding and agreement.
Answer to a:
The number of years for which the deposits will be made is given by:
= Retirement age - current age
= 65 - 23
= 42 years
Answer:
$96,080
Explanation:
Calculation of Caldwell Company amount of overhead applied to Product A using activity-based costing.
First step is to use ABC, Overhead assigned to Product A :
Using this formula
[(Number of machine setups for Product A / 1,000) * Machine setup Overhead costs] + [(Number of machine hours for Product A / 30,000) * Machining Overhead costs] + [(Number of inspections for Product A / 1,500) * Inspecting Overhead costs]
Hence:
Let plug in the formula
= [(240 / 1,000) * $105,000] + [(22,200 / 30,000) * $50,000] + [(660 / 1,500) * $77,000]
= $25,200 + $37,000 + $33,880
= $96,080
Therefore Caldwell Company amount of overhead applied to Product A using activity-based costing will be:$96,080
