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。） HZAT_
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. Y|LL]@Lv
Calculate M’s expected dividends for 2008 if it follows each of the following policies: X "7CN Td
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. 7_ix&oVI
B. It continues the 2007 dividend payout ratio. P6GTgQ<'BA
C. It uses a residual policy with all distributions in the form of dividends. {*O%A
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). 0E26J@jcZ7
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Answer: v<v;Z R)
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A: long-run growth rate J`5+Zngr
3*(1+10%) =3.3 million @
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B: target payout ratio 90 }vFoy
Target payout ratio=3/15=20% &5-1Cd E
Dividend of 2008=18*2%=3.6 million #`
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C: residual dividend approach 4N, [Gs<7
Retained earnings=total new investment*(1-debt ratio) |/K|
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=12*(1-40%) clU ?bF~e1
=7.2 million i[K Xkjr
Residual dividend=18-7.2=10.8 million f)_<Ih\/7_
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) W]eILCo
Regular dividend=3*(1+10%) =3.3 million 1!^BcrG .
Extra dividend=residual dividend –regular dividend h/tCve3Z
=10.8-3.3 _5 SvZ;4
=7.5 million d=bK NA90
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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. t, %m-dU
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. S Q:H2vvD
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. 7Y@]o=DIc
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). iqR6z\p&
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Answer: sX6\AYF1M
Notes: -E\G3/*51
Actual price=18560/3200=$5.8/unit <2]h$53y!
Actual quantity materials per unit=3200/2000=1.6 kg/unit '|]}f }Go
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1).Standard quantity * standard price=standard total cost 0 8L;u7u
(1.5*2000) * 6 =$18000 9!=4}:+
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials A]m*~Vj]
（3200-3000） * 6 =$1200 Kc[^Pu
3)Actual quantity * （actual price- standard price）= Price variance of direct materials S=P}Jpq?Y;
3200 * (5.8 – 6) =$640 Y[L,rc/j
4)actual quantity *actual price =actual total cost h
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3200 * 5.8 =$18560 >e!J(4.-
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A：Price variance of direct materials=（actual price-standard price）*actual quantity k+{ ~#@
= (5.8-6)*3200 )>h3IR
= $640 【F】 &PPnI(s^K
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. lB _9b_|2
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price Gs"lmX-{$j
= (3200-3000)*6 ?M4ig_
=$1200 【U】 {P?Ge
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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. H 2I
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C：Total variance of direct materials=actual costs- standard cost \
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=18560-18000 N_:!uR
=560 【U】 >AV9 K
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