Rory is the CFO of McIlroy Golf Designs Inc. MGDI earned $13 million last year and maintains a 30% dividend payout ratio. The company has 2 million shares of common stock outstanding and a P/E ratio of 10. What is the price per share of MGDI's stock

Answers

Answer 1
Answer:

Answer:

Price per share of MGDI's stock is $78

Explanation:

Earnings per share=Total earnings/Shares of common stock outstanding

=(13/2)=$6.5

PE ratio=Stock price/Earnings per share

Stock price=$6.5*12

=$78.


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Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titactium. There was an unfavorable materials price variance of $380 and a favorable materials quantity variance of $120. Based on these variances, one could conclude that:

Answers

Answer:

The actual usage of materials was less than the standard allowed.

Explanation:

Based on these variances, one could conclude that the actual usage of materials was less than the standard allowed because the Company planned to produce 3,000 units of its single product during November in which the standards for one unit of the product specify six pounds of materials at $0.30 per pound but at the end the Actual production in November was 3,100 units instead of 3,000 unit which was planned .

Therefore Materials quantity variance = (AQ - SQ) SP.

A favorable materials quantity variance can occurred in a situation where the actual usage of materials was less than the standard allowed which is AQ < SQ.

Ma Barker Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor. The labor rate is $6 per hour. If Job #334 contained 200 units, the unit product cost on the completed job cost sheet would be:

Answers

Answer:

Job 334 total cost:    $  8,400

Unit cost: 8,400 / 200 = $  42

Explanation:

Total cost: Material + Labor + Overhead

Material: 5,000

Labor:     2,400

Overhead:

(Cost\: Of \:Manufacturing \:Overhead)/(Cost \:Driver)= Overhead \:Rate

We distribute the expected cost over the expected base:

expected cost: 100,000

cost driver: 40,000 labor hours

cost per hour: 100,000 / 40,000 = 2.5 predetermined overhead

Now we multiply this rate by the hours of the job to know Applied Overhead:

job labor hours x overhead rate:

Job #334 had 2,400 labor cost / $6 rate per hour = 400 hours

400 x 2.5 = 1,000

Total cost: 5,000 + 2,400 + 1,000 = 8,400

Briana was employed as a flight attendant by Tropical Coast Airlines. She was the only black female flight attendant on the airplane she was assigned to. At her job, Briana was frequently subjected to racial slurs, misbehavior, and threats from her co-workers. One co-worker even told their supervisor that the airline’s customers would not want to take orders from a black girl in the case of an in-flight emergency. Unable to tolerate the hostile environment, Briana quit her job. Which of the following holds true in this scenario? A) Briana has a cause of action for racial harassment under 42 U.S.C. section 1983.
B) Briana does not have a cause of action for racial harassment, as she resigned at her own will.
C) Briana has a cause of action for racial harassment under Title VII of the Civil Rights Act of 1964, as there is evidence that she was harassed.
D) Briana does not have a cause of action for racial harassment, as the actions of her co-workers were not pervasive or severe.

Answers

Answer:

C) Briana has a cause of action for racial harassment under Title VII of the Civil Rights Act of 1964, as there is evidence that she was harassed.

Explanation:

It is noteworthy that under the Civil Rights Act of 1964 it directly prohibits discrimination in public places. Thus, we could rightly say that Briana's frequent subjection to racial slurs, misbehavior, and threats from her co-workers constitutes "discrimination in public places".

Hence, she has enough evidence to take legal action against Tropical Coast Airlines.

Expenses include all of the following except: Multiple Choice making a payment on account. using supplies. paying for electricity used during the current period. paying wages for production workers for work performed during the current period.

Answers

Answer:

using supplies

Explanation:

An expense can be described as cost incurred by a company in a bid to earn revenue.

When supplies are used no explicit cost is incurred in the process so it doesn't qualify as an expense.

I hope my answer helps you

Expenses include making a payment on account, using supplies, and paying wages for production workers for work performed during the current period.

What is not considered an expense?

However, paying for electricity used during the current period is not considered an expense. Instead, it is categorized as an operating cost or utility cost.

Expenses typically refer to the costs incurred by a business in its day-to-day operations, such as purchasing inventory, paying wages, or using supplies.


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A bond has a standard deviation of 10.7 percent and an average rate of return of 6.4 percent. What is the coefficient of variation (CoV)

Answers

Answer:

CoV = 1.671875 rounded off to 1.67

Explanation:

The coefficient of variation (CoV) is a measure of volatility of an investment. It tells the volatility in comparison with the expected return from the investment. We can say that the CoV tells us the risk per unit of return as CoV is calculated by dividing standard deviation, which is a measure of risk, by the expected return of the investment.

CoV = SD / r

Where,

  • SD is the standard deviation
  • r is the expected return

CoV = 0.107 / 0.064

CoV = 1.671875 rounded off to 1.67

Sid's Skins makes a variety of covers for electronic organizers and portable music players. The company's designers have discovered a market for a new clear plastic covering with college logos for a popular music player. Market research indicates that a cover like this would sell well in the market priced at $24.50. Sid's desires an operating profit of 25 percent of costs. Required: What is the highest acceptable manufacturing cost for which Sid's would be willing to produce the cover? (Round your answer to 2 decimal places.)

Answers

Answer:

The highest acceptable manufacturing cost for which Sid's would be willing to produce the cover is $19.60

Explanation:

The computation of the highest acceptable manufacturing cost is shown below:

We know that the market priced at $24.50 and the operating profit is 25%  of the cost, we assume the cost is 100 and the selling price equals to

= Cost + operating profit

= 100 + 25% × cost price

= 125

The market price is given for selling price but we have to compute for the cost price

So, the calculation would be

= $24.50 × 100 ÷ 125

= $19.60

Final answer:

The maximum manufacturing cost per unit for Sid's Skins to achieve a 25% profit margin is $19.60.

Explanation:

The question is asking for the maximum manufacturing cost Sid's Skins would be willing to incur per unit produced in order to achieve a 25 percent operating profit. To solve this, the formula cost = price / (1 + profit margin) is used, where the price is $24.50 and the desired profit margin is 0.25 or 25%.

By substituting these values into the formula, the calculation is as follows: cost = 24.50 / (1 + 0.25) = 24.50 / 1.25 = $19.60.

So, the maximum manufacturing cost per unit that Sid's Skins would be willing to endure in order to achieve their desired profit margin of 25 percent is $19.60.

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