Business, 19.11.2019 02:31 meiyrarodriguez
The hastings sugar corporation has the following pattern of net income each year, and associated capital expenditure projects. the firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends.
year net income profitable capital expenditure
1 $ 14 million $ 7 million
2 16 million 11 million
3 12 million 6 million
4 16 million 8 million
5 16 million 9 million
the hastings corporation has 3 million shares outstanding. (the following questions are separate from each other.)
a. if the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (enter your answer in millions.)
b. if the firm simply uses a payout ratio of 30 percent of net income, how much in total cash dividends will be paid? (enter your answer in millions and round your answer to 1 decimal place.)
c. if the firm pays a 10 percent stock dividend in years 2 through 5, and also pays a cash dividend of $3.40 per share for each of the five years, how much in total dividends will be paid?
d. assume the payout ratio in each year is to be 20 percent of the net income and the firm will pay a 10 percent stock dividend in years 2 through 5, how much will dividends per share for each year be? (assume the cash dividend is paid after the stock dividend.) (round your answers to 2 decimal places.)
Answers: 3
Business, 21.06.2019 21:30
White company has two departments, cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: department cutting finishing direct labor-hours 6,000 30,000 machine-hours 48,000 5,000 total fixed manufacturing overhead cost $ 264,000 $ 366,000 variable manufacturing overhead per machine-hour $ 2.00 " variable manufacturing overhead per direct labor-hour " $ 4.00 required: 1. compute the predetermined overhead rate for each department. 2. the job cost sheet for job 203, which was started and completed during the year, showed the following: department cutting finishing direct labor-hours 6 20 machine-hours 80 4 direct materials $ 500 $ 310 direct labor cost $ 108 $ 360 using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to job 203. 3. would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?
Answers: 3
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Business, 22.06.2019 13:30
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The hastings sugar corporation has the following pattern of net income each year, and associated cap...
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