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。） dH zo_VV
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. p}}o#a~V),
Calculate M’s expected dividends for 2008 if it follows each of the following policies: rRL:]%POT
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. &B7X
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B. It continues the 2007 dividend payout ratio. HkEfBQmh
C. It uses a residual policy with all distributions in the form of dividends. {cKKTD
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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). k| nv[xY0
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Answer: X552
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A: long-run growth rate W)?B{\
3*(1+10%) =3.3 million =\?KC)F*e
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B: target payout ratio X[ }5hZcX
Target payout ratio=3/15=20% BYrj#n5
Dividend of 2008=18*2%=3.6 million We E>4> ^
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C: residual dividend approach y'pAh
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Retained earnings=total new investment*(1-debt ratio) Qhsh{muw(
=12*(1-40%) SI)u@3hl&w
=7.2 million X4lz?Y :*
Residual dividend=18-7.2=10.8 million Y dmYE $
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) iXMs*G cK
Regular dividend=3*(1+10%) =3.3 million ;zI Ah[z
Extra dividend=residual dividend –regular dividend o4,W!^ n2
=10.8-3.3 _JiB=<Fkr
=7.5 million `\P#TBM
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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. 2}[)y\`t3
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. hdp;/Qz&
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. (u+3{E b
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). k/?5Fs!#
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Answer: DDyeN uK
Notes: ?k]^?7GN
Actual price=18560/3200=$5.8/unit aRdzXq#x
Actual quantity materials per unit=3200/2000=1.6 kg/unit f a;\4#
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1).Standard quantity * standard price=standard total cost Q-_&5/G
(1.5*2000) * 6 =$18000 iVLfAN @
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials N2vSJ\u
（3200-3000） * 6 =$1200 UYn5Pix
3)Actual quantity * （actual price- standard price）= Price variance of direct materials /mX/
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3200 * (5.8 – 6) =$640 & xo,49`!
4)actual quantity *actual price =actual total cost (PE x<r1
3200 * 5.8 =$18560 an jU3j
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A：Price variance of direct materials=（actual price-standard price）*actual quantity z;JyHC)
= (5.8-6)*3200 UR44
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= $640 【F】 Va"Q1 *"
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. Stq&^S\x69
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price lO! Yl:;m%
= (3200-3000)*6 F~2bCy[Z
=$1200 【U】 HKbyi~ 8N=
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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. >
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C：Total variance of direct materials=actual costs- standard cost xr}3
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=18560-18000 /]zn8 d
=560 【U】 }lt5!u~}
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