六、英语附加题(本题型共2题,每题5分,共10分。要求用英文解答,列出计算步骤,每步骤运算得数精确到小数点后两位。在答题卷上解答,答案写在试题卷上无效。) ) jBPt&
1、In 2007,M Corporation paid dividends totaling $3 million on net income of $15 million.2007 was a normal year, and for the past five years, earnings have grown at a constant rate of 10 percent. However,earnings are expected to jump to $18 million in 2008,and the firm expects to have $12 million investment opportunities in 2009.It is predicted that M will not be able to maintain the 2008 level of earnings growth in the future----the high 2008 earnings level is attributable to an exceptionally profitable new product line introduced in that year----and the company will return to its previous 10 percent growth rate. M’s target debt ratio is 40 percent in 2007, which will be continued in the future. "<6X=|C
Calculate M’s expected dividends for 2008 if it follows each of the following policies: _bB:1l?V
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. M:V'vme)+
B. It continues the 2007 dividend payout ratio. e]-bB#-A
C. It uses a residual policy with all distributions in the form of dividends. xgV.<^
D. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy(Indicate the regular dividend and the extra dividend separately). GUyMo@g
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Answer: k2
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A: long-run growth rate C}grY5:
3*(1+10%) =3.3 million .B
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B: target payout ratio O ;,BzA-n
Target payout ratio=3/15=20% AA[(rw
Dividend of 2008=18*2%=3.6 million
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C: residual dividend approach @jb
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Retained earnings=total new investment*(1-debt ratio) Tjba@^T
=12*(1-40%) n[$b k_S
=7.2 million B:5\+_a!
Residual dividend=18-7.2=10.8 million j G8W|\8
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) o%dKi]
Regular dividend=3*(1+10%) =3.3 million ;"/[gFD5u
Extra dividend=residual dividend –regular dividend ~)Z{ Yj9)S
=10.8-3.3 vsc)EM ]
=7.5 million .}'49=c
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2. N Company manufactures a kind of product used throughout the machinery industry. The standard price of the materials for the products is $6 per kilogram; the standard quantity of materials allowed per unit is 1.5 kilograms. During July, 2,000 units of the products were finished, for which 3,200 kilograms of materials were used at a total direct material cost of $18.560. LLp/ SWe
A. Calculate the direct material price variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. GZY8%.1{"a
B. Calculate the direct material quantity variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. N]gJ(g
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). 5[<"
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Answer: wuRB[KLe
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Actual price=18560/3200=$5.8/unit SMX70T!'9
Actual quantity materials per unit=3200/2000=1.6 kg/unit (`C#Tq
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1).Standard quantity * standard price=standard total cost 9i+OYWUO
(1.5*2000) * 6 =$18000 )S41N^j.
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials (C{l4
(3200-3000) * 6 =$1200 M*XAyo4fI
3)Actual quantity * (actual price- standard price)= Price variance of direct materials VRe7Q0
3200 * (5.8 – 6) =$640 (9g L
4)actual quantity *actual price =actual total cost
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3200 * 5.8 =$18560 +XL^dzN[|$
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A:Price variance of direct materials=(actual price-standard price)*actual quantity 04;E^,V
= (5.8-6)*3200 kD_Ac{{<
= $640 【F】 k@[\C`P
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. Tp
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B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price E|,RM;7
= (3200-3000)*6 EvP\;7B
=$1200 【U】 R:+cumHr
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Efficiency variance of $1200 【U】 due to the higher quantity of materials per unit of 1.6 kg/unit than the standard level of 1.5 kg/unit. k_?Z6RE>
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C:Total variance of direct materials=actual costs- standard cost .&i_~?1[N
=18560-18000 ;T\+TZ tI
=560 【U】 ?-v]+<$ Y
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