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。） [a#?}((
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. 7C,<i Y
Calculate M’s expected dividends for 2008 if it follows each of the following policies: /y+ ;g {
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. v
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B. It continues the 2007 dividend payout ratio. DctX9U(
C. It uses a residual policy with all distributions in the form of dividends. [XA&&EcU
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). Y3 Pz00x
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Answer: &etL&s v
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A: long-run growth rate ^VM"!O;h {
3*(1+10%) =3.3 million =|j*VF 2y"
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B: target payout ratio MbT
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Target payout ratio=3/15=20% DjevX7Q
Dividend of 2008=18*2%=3.6 million E-BOIy,
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C: residual dividend approach wI1M0@}PV
Retained earnings=total new investment*(1-debt ratio) &V ^
=12*(1-40%) |e
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=7.2 million >S-N|uR6
Residual dividend=18-7.2=10.8 million IL8'{<l M
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) )zk?yY6
Regular dividend=3*(1+10%) =3.3 million S?,KgMVM
Extra dividend=residual dividend –regular dividend pUCEYR
=10.8-3.3 gavQb3EP
=7.5 million L XTipWKz
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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. x0AqhT5}
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. /:*R -VdF
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. W[ jW;uk
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). @vQ;>4 i.
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Answer: F|
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Notes: kcma
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Actual price=18560/3200=$5.8/unit ]`CKQ>
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Actual quantity materials per unit=3200/2000=1.6 kg/unit z</XnN
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1).Standard quantity * standard price=standard total cost K\Y6
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(1.5*2000) * 6 =$18000 E:dT_
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2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials Zo}\gg3
（3200-3000） * 6 =$1200 W~+!"^<n
3)Actual quantity * （actual price- standard price）= Price variance of direct materials lhIr]'?l
3200 * (5.8 – 6) =$640 };VGH/}&s
4)actual quantity *actual price =actual total cost +i q+
3200 * 5.8 =$18560 ~ Nx oF
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A：Price variance of direct materials=（actual price-standard price）*actual quantity =E6i1x%j
= (5.8-6)*3200 n )wpxR
= $640 【F】 Li<266#A!
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. wzLiVe-
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price Y+PvL|`O
= (3200-3000)*6 ](
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=$1200 【U】 ]mJAKy cE%
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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. zvQ^f@lq2
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C：Total variance of direct materials=actual costs- standard cost NNREt:+kr
=18560-18000 t KqCy\-q
=560 【U】 Yf2+@E
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