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。） s0*@zn>h
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. h"t\x}8qq
Calculate M’s expected dividends for 2008 if it follows each of the following policies: oxXCf%!
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. (fcJp)D
B. It continues the 2007 dividend payout ratio. !"<~n-$B
C. It uses a residual policy with all distributions in the form of dividends. w '7=CzfYn
D. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy(Indicate the regular dividend and the extra dividend separately). _BHEK
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Answer: |ZtNCB5{^j
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A: long-run growth rate Er@OmNT
3*(1+10%) =3.3 million 17F<vo>l%
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B: target payout ratio 'T(@5%Db
Target payout ratio=3/15=20%
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Dividend of 2008=18*2%=3.6 million Nx=rw h
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C: residual dividend approach AA<QI' 6
Retained earnings=total new investment*(1-debt ratio) ':!aF Mj^
=12*(1-40%) JsHD 3
=7.2 million l;i /$Yu7
Residual dividend=18-7.2=10.8 million cG, zO- H
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) 4/AE;y X
Regular dividend=3*(1+10%) =3.3 million u7l O2 C7
Extra dividend=residual dividend –regular dividend #jM- XK
=10.8-3.3 T,h 9xl
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=7.5 million (!%9#
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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. 8p_6RvG
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. `k`P;(:
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. # p2`9o
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). n+ S&[Y
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Answer: J?C :@Q
Notes: '^M.;Giz
Actual price=18560/3200=$5.8/unit fwNj@fl_,e
Actual quantity materials per unit=3200/2000=1.6 kg/unit X}H? *'-
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1).Standard quantity * standard price=standard total cost ?NR&3 q
(1.5*2000) * 6 =$18000 Up5 |tx7
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials L g{M<Q)
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（3200-3000） * 6 =$1200 |#y H,f
3)Actual quantity * （actual price- standard price）= Price variance of direct materials <iB5&
3200 * (5.8 – 6) =$640 )+|Y;zC9
4)actual quantity *actual price =actual total cost q _Z+H4
3200 * 5.8 =$18560 LVT:oIQ
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A：Price variance of direct materials=（actual price-standard price）*actual quantity &f2:aT)
= (5.8-6)*3200 %j.n^7i]^:
= $640 【F】 zd/ kr
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. R3%%;` c=
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price Q-z `rW
= (3200-3000)*6 fbD,\ rjT
=$1200 【U】 -iKoQkHt
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Efficiency variance of $1200 【U】 due to the higher quantity of materials per unit of 1.6 kg/unit than the standard level of 1.5 kg/unit. E^A S65%bL
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C：Total variance of direct materials=actual costs- standard cost "By$!R -&
=18560-18000 \*[DR R0
=560 【U】 x"!`JDsS
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