J. Ross and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. Ross' common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. Which of the following is the firm's cost of retained earnings? (Round off the answer to two decimal places.)?
A. ?16.34 percent
B. ?10.42 percent
C. ?15.50 percent
D. ?12.20 percent
E. ?13.25 percent
Answer: C
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Compass Metal Bearings produces two sizes of metal bearings (sold by the crate)—standard and heavy. The standard bearings require $200 of direct materials per unit (per crate), and the heavy bearings require $245 of direct materials per unit. The operation is mechanized, and there is no direct labor. Previously Compass used a single plantwide allocation rate for manufacturing overhead, which was $1.55 per machine hour. Based on the single rate, gross profit was as follows:
Although the data showed that the heavy bearings were more profitable than the standard bearings, the plant manager knew that the heavy bearings required much more processing in the metal fabrication phase than the standard bearings, and that this factor was not adequately reflected in the single plantwide allocation rate. He suspected that it was distorting the profit data. He suggested adopting an activity-based costing approach.
Working together, the engineers and accountants identified the following three manufacturing activities and broke down the annual overhead costs as shown below:
Engineers believed that metal fabrication costs should be allocated by weight and estimated that the plant processed 12,000 kilos of metal per year. Machine processing costs were correlated to machine hours, and the engineers estimated a total of 380,000 machine hours f
Which of the following is true of an ERP system?
A. It does not facilitate the flow of information between a company and its suppliers. B. Its usage is mandatory for ensuring the protection of customer data. C. It can only be used to store data about a company's resources. D. It facilitates the flow of information among all the business functions within an organization. E. Its usage makes hacking difficult and therefore enhances security.
_________ chain management applies technology to the activities in the order life cycle from inquiry to sale.
Fill in the blank(s) with the appropriate word(s).
If the coefficient of variation is 40% and the mean is 70, then the variance is
a. 28. b. 2800. c. 1.75. d. 784.