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。） @w
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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. Y_|K,T6Zj@
Calculate M’s expected dividends for 2008 if it follows each of the following policies: T_YMM' `
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. gMoy y
B. It continues the 2007 dividend payout ratio. : . FfE
C. It uses a residual policy with all distributions in the form of dividends. 0pZ.; /<{
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). !h`cXY~ w
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Answer: 32)&;
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A: long-run growth rate 47(
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3*(1+10%) =3.3 million Wf+Cc?/4
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B: target payout ratio cx1WGbZ
Target payout ratio=3/15=20% bH)8UQR%
Dividend of 2008=18*2%=3.6 million #h
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C: residual dividend approach z9); e8ck
Retained earnings=total new investment*(1-debt ratio) CHdet( _=v
=12*(1-40%) Ztpm _P6
=7.2 million t?#vb}_
Residual dividend=18-7.2=10.8 million 5 ,=B
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) c?V*X -
Regular dividend=3*(1+10%) =3.3 million C&d"#I
Extra dividend=residual dividend –regular dividend YiQeI|{oN
=10.8-3.3 j 4
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=7.5 million oE |u;o
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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. mw4'z,
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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. f@xfb
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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. 1>*UbV<R;u
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). B3g82dm
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Answer: >w]k3MC
Notes: '#An+;x{
Actual price=18560/3200=$5.8/unit 1X!f!0=g+
Actual quantity materials per unit=3200/2000=1.6 kg/unit *nUpO]
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1).Standard quantity * standard price=standard total cost Oa_o"p<Lr
(1.5*2000) * 6 =$18000 & :e} 4/G
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials .xc/2:m9
（3200-3000） * 6 =$1200 7&;jje[
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3)Actual quantity * （actual price- standard price）= Price variance of direct materials >I8hFtAM
3200 * (5.8 – 6) =$640 n\8[G [M
4)actual quantity *actual price =actual total cost uX5 --o=C
3200 * 5.8 =$18560 0F0(]7g^
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A：Price variance of direct materials=（actual price-standard price）*actual quantity (J;zk b
= (5.8-6)*3200
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= $640 【F】 g#KToOP
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. 2Ws/0c
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price by:xD2 5
= (3200-3000)*6 glKs8
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=$1200 【U】 :]z-Rz
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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. tx&U "]
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C：Total variance of direct materials=actual costs- standard cost p i l*/&pB
=18560-18000 VOF
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=560 【U】 (+Nmio
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