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。） s0. yPA
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. RIM"MR9qe=
Calculate M’s expected dividends for 2008 if it follows each of the following policies: X{ZBS^M
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. z_<
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B. It continues the 2007 dividend payout ratio. e0*',
C. It uses a residual policy with all distributions in the form of dividends. BJk\p.BVN
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). & |26x
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Answer: Lqbu]
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A: long-run growth rate 'e\m6~u\hm
3*(1+10%) =3.3 million ~|pVz/s|G
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B: target payout ratio 2anx]QV4
Target payout ratio=3/15=20% |z|5j!Nfh
Dividend of 2008=18*2%=3.6 million JQE^ bcr
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C: residual dividend approach mhp5}
Retained earnings=total new investment*(1-debt ratio) Uz\B^"i|
=12*(1-40%) or ~o
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=7.2 million =2)5_/9au
Residual dividend=18-7.2=10.8 million dt)
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) { `KgyC W:
Regular dividend=3*(1+10%) =3.3 million oFHVA
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Extra dividend=residual dividend –regular dividend q[1H=+
=10.8-3.3 1p23&\\~
=7.5 million ]^&DEj{
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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. djPr 4Nog
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.
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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. R',|Jf=`
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). W2yN EiH
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Answer: IL}pVa00{n
Notes: R?>a UFM
Actual price=18560/3200=$5.8/unit u|WX?@\
Actual quantity materials per unit=3200/2000=1.6 kg/unit ;
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1).Standard quantity * standard price=standard total cost PFG):i-?
(1.5*2000) * 6 =$18000 RXt`y62yK
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials rc*3k
（3200-3000） * 6 =$1200 @*q\$Eg}2
3)Actual quantity * （actual price- standard price）= Price variance of direct materials ?9v!UT&#
3200 * (5.8 – 6) =$640 X5qU>'?`
4)actual quantity *actual price =actual total cost A ! <R?
3200 * 5.8 =$18560 %6L!JN
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A：Price variance of direct materials=（actual price-standard price）*actual quantity "a5?cX;
= (5.8-6)*3200 {.H}+ @0
= $640 【F】 OWB^24Z&3
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. 0UWLs_k:
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price +tdt>)a
= (3200-3000)*6 15 uVvp /
=$1200 【U】 jLD=EJ
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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. = NF},j "
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C：Total variance of direct materials=actual costs- standard cost uc=-+*D'I
=18560-18000 ,, ]y 8P
=560 【U】 uM PJ
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