Brian is getting nervous about his stock holding in KalraCo. He bought the stock three years ago at $20 per share and the price is now $65 per share. KalraCo. has a policy of paying out 60 percent of its earnings in dividends and Brian expects the company to continue earning about 12 percent return on equity. Over the past 12 months, KalraCo. paid $2.50 in dividends. Assume a discount rate of 15%. a) Based on Brians’s projections, is the stock overpriced at $45 per share?
b) Should the firm increase or decrease their payout ratio? Explain your answer.

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1

The solution set for -18 < 5x-3 iso-3х3< xо-3хo3 > x

If jobs have been undercosted due to underallocation of manufacturing overhead, then cost of goods sold (cogs) is too low and which of the following corrections must be made? a. decrease cogs for double the amount of the underallocation b. increase cogs for double the amount of the underallocation c. decrease cogs for the amount of the underallocation d. increase cogs for the amount of the underallocation