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。） 13
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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. @KA1"Wb_
Calculate M’s expected dividends for 2008 if it follows each of the following policies: > :Ze4}(
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. !| xZ6KV
B. It continues the 2007 dividend payout ratio.
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C. It uses a residual policy with all distributions in the form of dividends. %iJ|H( P
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). vCb]%sd-U
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A: long-run growth rate ` ?9T~,
3*(1+10%) =3.3 million aD ESr?
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B: target payout ratio 2]2H++
Target payout ratio=3/15=20% NR4Jn
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Dividend of 2008=18*2%=3.6 million yU7I;]YP
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C: residual dividend approach %!y89x=E
Retained earnings=total new investment*(1-debt ratio) %LQ/ q 3?_
=12*(1-40%) e g3L:rk_
=7.2 million jK3\K/ob(
Residual dividend=18-7.2=10.8 million [bjN
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) //.>>-~1m
Regular dividend=3*(1+10%) =3.3 million g1 9S
Extra dividend=residual dividend –regular dividend i
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=10.8-3.3 9&K/GaG
=7.5 million ZJ(rG((!
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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. \H4U8)l
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. 8Kk\*8 <
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. T'1gy
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C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). =yqHC<8:
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Answer: i8~ r
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Actual price=18560/3200=$5.8/unit \.<KA
Actual quantity materials per unit=3200/2000=1.6 kg/unit )X5(# E
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1).Standard quantity * standard price=standard total cost S|K}k:v8
(1.5*2000) * 6 =$18000 <o0~H
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials U<Jt50O
（3200-3000） * 6 =$1200 I:$"E%
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3)Actual quantity * （actual price- standard price）= Price variance of direct materials (} gcY
3200 * (5.8 – 6) =$640 5v9Vk` 3'
4)actual quantity *actual price =actual total cost vM4<d>
3200 * 5.8 =$18560 BU6Jyuwn
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A：Price variance of direct materials=（actual price-standard price）*actual quantity /P+q}L %
= (5.8-6)*3200 ;&f1vi4
= $640 【F】 {' R)4hL
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. AhxGj+
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price EJm4xkYLj1
= (3200-3000)*6
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=$1200 【U】 "!L kp2\
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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+1gQru{d
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C：Total variance of direct materials=actual costs- standard cost 4# )6 .f~
=18560-18000 \##5O7/1
=560 【U】 .y): Rh^
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