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。） *UJB *r
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.
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Calculate M’s expected dividends for 2008 if it follows each of the following policies: NwQ$gDgu t
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. 7lJ8<EP9
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B. It continues the 2007 dividend payout ratio. 1rU\ !GfR
C. It uses a residual policy with all distributions in the form of dividends. I$ )9T^Ra
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). Qy=tkCN
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Answer: {!{T,_ J
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A: long-run growth rate RU=g|TL
3*(1+10%) =3.3 million EG8z&^O x
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B: target payout ratio aO9\8\^
Target payout ratio=3/15=20% 5H 1x-b
Dividend of 2008=18*2%=3.6 million @E h(GZN
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C: residual dividend approach 7)Tix7:9S;
Retained earnings=total new investment*(1-debt ratio) d4Y[}F cp+
=12*(1-40%) W=|'&UU Ul
=7.2 million QV*la= j/
Residual dividend=18-7.2=10.8 million ^{++h?cS)
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) N "
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Regular dividend=3*(1+10%) =3.3 million - ( }N-yu
Extra dividend=residual dividend –regular dividend YhAO
=10.8-3.3 7ruWmy;j
=7.5 million 6Q+VW_~
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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. V2tA!II-s
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. |BGzdBm^x:
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. @:!% Z`
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). Ml +f3
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Answer: n
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Actual price=18560/3200=$5.8/unit ]Rp<64I o
Actual quantity materials per unit=3200/2000=1.6 kg/unit 2elj@EB,M
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1).Standard quantity * standard price=standard total cost J
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(1.5*2000) * 6 =$18000 =umF C[. W
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials E !I4I'
（3200-3000） * 6 =$1200 ypfjF@OT
3)Actual quantity * （actual price- standard price）= Price variance of direct materials 6Hd^qouid
3200 * (5.8 – 6) =$640 *t={9 h
4)actual quantity *actual price =actual total cost H-X5A\\5
3200 * 5.8 =$18560 WCp[6g&%O
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A：Price variance of direct materials=（actual price-standard price）*actual quantity qrt2uE{K
= (5.8-6)*3200 2fPMZ7Zd3
= $640 【F】 d{C8}U
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. )
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price o9v9
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= (3200-3000)*6 L;KLmxy#
=$1200 【U】 `X` |]mWj
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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. ]7
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C：Total variance of direct materials=actual costs- standard cost ;:Kc{B.s
=18560-18000 2b :I .
=560 【U】 mj y+_
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