Answer:
c. $5,500,000
Explanation:
Intangible assets are those assets which does not have any physical existence and therefore it's not possible to touch, it means these assets are not physical in nature such as Trademarks, which is an intellectual property that identifies product or services of a company.
Goodwill, is the value of a company because of the reputation or product it sells, the value of the company it's higher than the total value of its assets.
Answer:
The dividend growth rate is 8%.
Explanation:
Considering the stock is the one that has a constant dividend growth, we use the DDM approach for constant growth model. The constant growth model formula for price of a stock today is,
P0 = D1 / r - g
Where,
- D1 is the dividend in the next period or D0 * (1 + g)
- r is the required rate of return
- g is the growth rate in dividends
Plugging in the available value,
30 = 1.25 ( 1+g) / (0.125 - g)
30 * (0.125 - g) = 1.25 + 1.25g
3.75 - 30g = 1.25 + 1.25g
3.75 - 1.25 = 30g + 1.25g
2.5 / 31.25 = g
g = 0.08 or 8%
Answer:
correct option is a. common costs
Explanation:
solution
As common costs are those associated with operating a facility shared by the two departments
and here One facility located in Iowa and corn from the facility will be more further process into the corn for popping and the cornmeal
so as given cost at given costs at Iowa plant is common costs
so correct option is a. common costs
Answer:
The maximum that one should be willing to pay for this stock today is $21.38
Explanation:
The constant dividend paying company is the one whose dividend growth remains zero or unchanged. The zero growth model of the DDM is used to calculate the price or value of stock today of such a stock. This kind of stock is just like a perpetuity as it pays a fixed amount after fixed intervals of time forever.
The formula for price of such a stock or zero growth model is:
Price = Dividend / r
Price = 3.1 / 0.145
Price = $21.379 rounded off to $21.38
Answer:
Applied overhead: 387,750
underapplied by 74,250
Explanation:
to get the predetermined overhead rate we will distribute the expected cost along a cost driver. In this case, labor hours.
403,260 / 61,100 = 6.6
Then, we apply this rate to the actual labor hours for the period:
58,750 x 6.6 = 387,750
This will be the applied overhead for the period.
The we compare with the actual overhead:
387,750 - 462,000 = (74,250)
As the actual cost were higher the overhead was underpapplied.