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。) SX]uIkw
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 $12 million investment opportunities in 2009.It is predicted that M will not be able to maintain the 2008 level of earnings growth in the future----the high 2008 earnings level is attributable to an exceptionally profitable new product line introduced in that year----and the company will return to its previous 10 percent growth rate. M’s target debt ratio is 40 percent in 2007, which will be continued in the future. wfQ^3HL
Calculate M’s expected dividends for 2008 if it follows each of the following policies: uD4j.%
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. qAW?\*n5N
B. It continues the 2007 dividend payout ratio. 5>\~jf
C. It uses a residual policy with all distributions in the form of dividends. D~b_nFD
D. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy(Indicate the regular dividend and the extra dividend separately). A-f,&TO
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Answer: :^rt8>~
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A: long-run growth rate @@V{W)rl
3*(1+10%) =3.3 million O)$Pvll
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B: target payout ratio *2>k
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Target payout ratio=3/15=20% gP.PyYUV
Dividend of 2008=18*2%=3.6 million 'YvRkWf:KC
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C: residual dividend approach L%HFsuIO-
Retained earnings=total new investment*(1-debt ratio) DH Qs_8Df
=12*(1-40%) 7 g|EqJ7
=7.2 million jSMxb a]
Residual dividend=18-7.2=10.8 million <Uc?#;%Y}
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) K~6u5 a9s
Regular dividend=3*(1+10%) =3.3 million ):lH
Extra dividend=residual dividend –regular dividend 5tl($j
=10.8-3.3 K$
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=7.5 million vYg>^!Q
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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. X/ lmj_v
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. &embAqW:
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(I=KBI
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). %JL P=(
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Answer: U:0Ma6<
Notes: d_7hh
Actual price=18560/3200=$5.8/unit ]
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Actual quantity materials per unit=3200/2000=1.6 kg/unit z/,&w_8,:
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1).Standard quantity * standard price=standard total cost <q&4Y+b
(1.5*2000) * 6 =$18000 89x;~D1
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials \V#fl
(3200-3000) * 6 =$1200 &%`WXe-`R
3)Actual quantity * (actual price- standard price)= Price variance of direct materials GH \
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3200 * (5.8 – 6) =$640 G!+Mu2
4)actual quantity *actual price =actual total cost R PdFLC/
3200 * 5.8 =$18560 e}+Zj'5
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A:Price variance of direct materials=(actual price-standard price)*actual quantity Bo$dIn2_
= (5.8-6)*3200 jG{OLF6 !
= $640 【F】 %j@@J\G!
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. tl;b~k
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B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price i1ScXKO
= (3200-3000)*6 ;I?x;lH
=$1200 【U】 ,KCxNdg^#-
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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. Zs4NN2~
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C:Total variance of direct materials=actual costs- standard cost 6Ad
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=18560-18000 wYr*('uT
=560 【U】 qw
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