PART 4 11. Flexible budgets All the following are true of flexible budgets EXCEPT that they: Use the same flexible (variable) cost per unit as the master budget. Result in higher total costs for greater levels of production. Allow comparison of actual results to targets based on the achieved level of production. Reflect the same level of production as the master budget 12. ABC Which of the following is a sign that an ABC system may be useful? there are small amounts of support costs. Products make diverse demands on resources because of differences in volume, process steps, batch size, …

## Apple Valley Orchards

PART 2 4. # 4. ABC Using ABC information from problem # 3, if costs were allocated using call length rather than numbers of calls to increase profits on the more complex Specialty Products, managers may be motivated to: Increase the length of calls Increase the number of calls Decrease the length of calls Decrease sales revenues 5. # Variance Analysis Apple Valley Orchards, Inc (AVO), developed standard costs for direct material and direct labor. in 2008, AVO estimated the following standard costs for one of their most well loved products , the AVO classic Grandma’s large apple pie which …

## Probability Distribution Assignment

PART 2 8.The probability distribution of possible net present values for project X has an expected value of \$20,000 and a standard deviation of \$10,000. Assuming a normal distribution: Calculate the probability that the net present value will be zero or less, Calculate the probability that the NPV will be greater than \$30,000, Calculate the probability that the NPV will be less than \$5,000 9. Macy announced they will pay a dividend of \$2 on its common stock next year.  Thereafter, you expect dividends to grow at a rate of 6 percent a year in perpetuity.  If you require a …

## Capital Market Finance Paper

Please apply the basic financial principles and use your common sense—as indicated you will also need to do some research.  Your grade will be based on your thinking process and your subject knowledge of what we have covered. Part One of your paper should be between 5 and 7 pages single-spaced and Part Two should be between 3 and 4 pages single-spaced.  PART ONE: We have discussed the essential elements of a business plan. As you may recall, a typical business plan has a number of standard sections to it, including a section that helps investors understand the market for …

## Calculate Annual Tax Rate

Tax Liability A corporation has \$7 mil. in equity. During the tax year it takes in \$4 million in receipts and earns \$ 2 million in capital gains from sale of subsidiary. It incurs labor costs of \$1 million, interest costs of \$250,000, material costs of \$500,000, and pays rent for structure of \$250,000. Calculate the corporation’s total accounting profit and assuming that the profit is fully taxable, calculate its tax liability using the tax rates in this table: Taxable Income ATR at begin of bracket MTR Less than 50,000 0% 15% more than 50,000 but less than 75,00 15% …

## Provide management accounting information

Pender Bearings PTY LTD Question Based on a single cost driver of 20,000 direct labour hours, Pender Bearings Pty Ltd has analysed its factory overhead costs for the following year as:   Fixed Variable Total lndirect materials 44,000 40,000 84,000 lndirect labour 46,000 40,000 86,000 Fueloil 18,000 20,000 38,000 Repairs and maintenance 10,000 15,000 25,000 Other factory overhead 22,000 5,000 27,000 Total 140,000 120,000 260,000 Required: lf Pender Bearings had estimated an activity level of 22,000 direct labour hours, estimate what the amount of the total variable,total fixed and total factory over head would have been. Pender Bearings estimates are …

## The Efficient Frontier article, “The 15-Stock Diversification Myth,”

Bling Diamond’s cash dividend be in seven years ? 5. Four years ago, Bling Diamond, Inc., paid a dividend of \$1.20 per share. Bling paid a dividend of \$1.93 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 7 percent per year. What will Bling Diamond’s cash dividend be in seven years? 6. UsingCapital Asset Pricing Model, A stock has an expected return of 16.2 percent, a beta of 1.75, and the expected return on the market is 11 percent. What must …

## Exporting Conversion Problems

How much did the company make or lose ? Use the following information to answer questions 1-2. The current exchange rate between the US dollar and the Japanese yen is \$1 = 102.690 yen. The one month forward rate is \$1 = 102.505 yen. The two month forward rate is \$1 = 102.349 yen. The three month forward rate is \$1 = 102.207 yen. How would a US exporter which receives 395,000 yen in 30 days contract in the forward market to pay the future invoice? How many dollars would the exporter receive?How much did the company make or lose …

## Currency Swap

Question 1 An Australian farmer has just sold a shipment of live sheep worth KWD100 000 to Kuwait, with the payment due in three months. The company wishes to hedge this exposure, since the Kuwaiti dinar is expected to depreciate against the Australian dollar in the next three months. Australian banks are unwilling to offer forward contracts on the Kuwaiti currency. However, Kuwaiti banks offer forward contracts to trade the currency against the US dollar. The following information is available: Current spot rate (AUD/KWD)                                  5.46 Expected spot rate (AUD/KWD)                                5.20 Current spot rate (KWD/USD)                                   0.340 Expected spot rate (KWD/USD)                                0.324 …

## FIN 615 Financial Analysis and Modeling

PART 4 The student population of Moon University at the end of the last five years is provided on cells B2-B6. Which is the correct formula for cell B7 that will allow you to determine the student population growth rate from the end of year 1 to the end of year 5?     a. =RATE(A6,0,B2,B6,0) b. =RATE(A6,0,-B2,B6,0) c. =RATE(A6-A2,0,-B2,B6,0) d. =RATE(A6-A2,0,B2,B6,0) e. =RATE(A6-A2,0,-B2,B6,1) You have a credit card balance of \$5,000 that you want to pay in full before buying something else. If the interest rate of the credit card is 17%, what should be the formula on cell …