Q7: formosan freedom co. is currently priced at $42.50 per share and it is expected to sell for 6% more next
year. the stock will pay an annual dividend per share of $1.10 next year. what is the expected return on this
stock?

q8: suppose mbi co. is expected to pay a $0.60 dividend per share next year. wall street analysts project the
stock will sell for $35.75 in one year. you have been earning 11.5% on your other investments and you believe
this one should give you the same return. what is the most you can pay for mbi today in order for you to earn
your required return?

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be: