Chapter 7 Stock Valuation Solution to Problems P7-1. LG 2: Authorized and Available Shares Basic (a) Maximum shares available for sale Authorized shares 2‚000‚000 Less: Shares outstanding 1‚400‚000 Available shares 600‚000 (b) $48‚000‚000Total shares needed 800‚000 shares$60== The firm requires an additional 200‚000 authorized shares to raise the necessary funds at $60 per share. (c) Aspin must amend its corporate charter to authorize the issuance of additional shares. P7-2. LG 2: Preferred Dividends
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ACT 5733 – Advanced Managerial Accounting Fall 2012 HW #3 Question #1 Consider the following potential investment‚ which has the same risk as the firm’s other projects: Time Cash Flow 0 -$95‚000 1 $20‚000 2 $24‚000 3 $24‚000 4 $24‚000 5 $24‚000 6 $32‚000 a) What are the investment’s payback period‚ IRR‚ and NPV‚ assuming the firm’s WACC is 10%. b) If the firm requires a payback period of less than 5 years‚ should this project be accepted? Answer: Yes it should accept
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Managerial Accounting Reality Check Summaries Professor Shin Hee-Lim Shin 1001006 Reality Check – What’s your blog’s ROI? Summary ROI has been always one of the important factors to determine how profitable the business is doing. However‚ for until last few decades‚ ROI was only implementing to evaluate the hard assets like buildings and equipment. But in nowadays‚ many companies are using ROI to evaluate the investment in technology‚ such as blog. As a following example‚ it shows that
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is: Analysis Period amount/Base Period Amount x100 9. One of several ratios that reflects solvency includes the: Debt-to-equity ratio 10. Current assets divided by current liabilities is the: Current Ration 11. Ch.18 Managerial accounting is different from financial accounting in that: (users and decision makers‚ purpose of info‚ flexibility of practice‚ timeliness of information‚ time decision‚ focus of information‚ nature of information) 12. Which of the following items are management concepts
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job’s cost according to the accounting system? 5. Direct labor made up $8‚000 of the $40‚000 ending Work in Process inventory balance. Supply the information missing below: Direct materials . . . . . . . . . . . . . . . $ ? Direct labor . . . . . . . . . . . . . . . . . . . 8‚000 Manufacturing overhead . . . . . . . . . ? Work in process inventory . . . . . . . $40‚000 SOLUTION: 1. a. [pic]
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Chapter 10 Study Notes Standard: a benchmark or ‘norm’ for measuring performance (what we expect to happen).Using these standards we have Quantity and Price Standards. Quantity Standards: how much of an input should be used in manufacturing a unit of product or in providing a unit of service (similar to a cook recipe: list of items and how much to use) Cost (Price) Standards: the cost (purchase price) of the units should be (how much we expect to pay for a particular item) Management
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Student Answer: Choice A. Choice B. Choice C. Choice D. Instructor Explanation: Chapter 3 Points Received: 0 of 5 Comments: Question 2. Question : (TCO F) Process costing would be appropriate for each of the following except: Student Answer: custom furniture manufacturing. oil refining. grain milling. newsprint production. Instructor Explanation: Chapter 4 Points Received: 5 of 5 Comments: Question 3. Question : (TCO F) Unizat Corporation uses the
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TEST BANK CHAPTER 1 Intercorporate Investments: An Overview MULTIPLE CHOICE Use the following information on a company’s investments in equity securities to answer questions 1- 4 below. The company’s accounting year ends December 31. | |Date of acquisition|Cost |Fair value |Date sold |Selling price | |Investment | | |12/31/10 | |
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“Lecture Preparation Instructions” tab in Vista prior to each class for detailed instructions and reading assignments. Each lecture will require preparation. Identify Issues Analyze Data Build Model Run Model Make Decision Management Accounting: Decision-making The Corporate Environment: Corporations are a conglomeration of people with a common purpose. The individuals seek to attain goals for the corporation‚ with the ultimate goal being profitability. In order to achieve this
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Chapter 3 Solutions‚ 3rd day Exercise 3-13 (15 minutes) 1. | Actual manufacturing overhead costs | | $ 48‚000 | | Manufacturing overhead applied: 10‚000 MH × $5 per MH | | 50‚000 | | Overapplied overhead cost | | $ 2‚000 | | | | | 2. | Direct materials: | | | | Raw materials inventory‚ beginning | $ 8‚000 | | | Add: Purchases of raw materials | 32‚000 | | | Raw materials available for use | 40‚000 | | | Deduct: Raw materials inventory
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