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。） ;~d$O M
1、In 2007,M Corporation paid dividends totaling ＄3 million on net income of ＄15 million.2007 was a normal year, and for the past five years, earnings have grown at a constant rate of 10 percent. However,earnings are expected to jump to ＄18 million in 2008,and the firm expects to have ＄12 million investment opportunities in 2009.It is predicted that M will not be able to maintain the 2008 level of earnings growth in the future----the high 2008 earnings level is attributable to an exceptionally profitable new product line introduced in that year----and the company will return to its previous 10 percent growth rate. M’s target debt ratio is 40 percent in 2007, which will be continued in the future. Iu`S0#+
Calculate M’s expected dividends for 2008 if it follows each of the following policies: L+
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A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. zks7wt]A
B. It continues the 2007 dividend payout ratio.
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C. It uses a residual policy with all distributions in the form of dividends. B)L0h i
D. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy(Indicate the regular dividend and the extra dividend separately).
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Answer: l Ib
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A: long-run growth rate +,$pcf<[V
3*(1+10%) =3.3 million !7)#aXt
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B: target payout ratio WvfM.D!
Target payout ratio=3/15=20% )rAJ>;
Dividend of 2008=18*2%=3.6 million I_Gz~ qk6
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C: residual dividend approach e?B}^Dk0i
Retained earnings=total new investment*(1-debt ratio) =2=rPZw9
=12*(1-40%) $M!iQ"bb
=7.2 million /3SEu(d!
Residual dividend=18-7.2=10.8 million [{GN#W|AGP
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) xfI0P0+
Regular dividend=3*(1+10%) =3.3 million &IzNoB
Extra dividend=residual dividend –regular dividend |K{ d5\_
=10.8-3.3 |j9aTv
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=7.5 million -mh"["L"
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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. IpSWg
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. :b %2qBv
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. K*b* ]hf{
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). -Q
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Answer: G `!A#As
Notes: {I $i D
Actual price=18560/3200=$5.8/unit -LUZ7,!/>o
Actual quantity materials per unit=3200/2000=1.6 kg/unit i$6rnS&C
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1).Standard quantity * standard price=standard total cost ZS(
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(1.5*2000) * 6 =$18000 G7v<Q,s
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials hxM{}}. E
（3200-3000） * 6 =$1200 4Otq3s34FT
3)Actual quantity * （actual price- standard price）= Price variance of direct materials 4'*.3f'bp
3200 * (5.8 – 6) =$640 W SxoGly
4)actual quantity *actual price =actual total cost L*,h=#x(
3200 * 5.8 =$18560 ' 7oCWHq[
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A：Price variance of direct materials=（actual price-standard price）*actual quantity Y~{<Hs
= (5.8-6)*3200 ~xsJML
= $640 【F】 &p_ iAMn:9
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. Er t={"Q
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price 4 uMMf
= (3200-3000)*6 bfZt <-
=$1200 【U】 A[7H-1-
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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. ^0}wmxDq
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C：Total variance of direct materials=actual costs- standard cost :Rv+Bm
=18560-18000 M /9[P*
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=560 【U】 W#NZnxOX"
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