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。） Q7#Q6-
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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. ;%U`lE 0
Calculate M’s expected dividends for 2008 if it follows each of the following policies: v3aiX
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. pGsVO5M?
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. k,q` ^E8k
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). >xH3*0 Lp
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Answer: LX w&d]P
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A: long-run growth rate $RF"m"
3*(1+10%) =3.3 million /nC"'d(#
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B: target payout ratio 2Jj`7VH>
Target payout ratio=3/15=20% Gzm[4|nO^
Dividend of 2008=18*2%=3.6 million `D GO~RMp9
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C: residual dividend approach z2,rnm
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Retained earnings=total new investment*(1-debt ratio)
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=12*(1-40%) ExnszFX*
=7.2 million Kk??}
Residual dividend=18-7.2=10.8 million eL- 92]]e
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) {O!fV<Vx 9
Regular dividend=3*(1+10%) =3.3 million s]=kD
Extra dividend=residual dividend –regular dividend B"{CWH O
=10.8-3.3 2f~s$I&l#
=7.5 million /+66y=`UJ
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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. Q0M8 }
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. tc#
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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. ~}TVM%0RTq
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). I@x* >
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Answer:
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Notes: . 0s/O
Actual price=18560/3200=$5.8/unit 'rd{fe_g!
Actual quantity materials per unit=3200/2000=1.6 kg/unit {q h`8
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1).Standard quantity * standard price=standard total cost `#9ZP
(1.5*2000) * 6 =$18000 9]kWM]B)o
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials 6 %:'2;xM
（3200-3000） * 6 =$1200 wGb D%=
3)Actual quantity * （actual price- standard price）= Price variance of direct materials vbA9 V<c&
3200 * (5.8 – 6) =$640 x#pT B.
4)actual quantity *actual price =actual total cost =I*"vwc?
3200 * 5.8 =$18560 eBBh/=Zc
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A：Price variance of direct materials=（actual price-standard price）*actual quantity
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= (5.8-6)*3200 <hS >L1ZSr
= $640 【F】 N!btj,vx
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. Bv/v4( G5g
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price ,9q5jOnk
= (3200-3000)*6 PRf 2@0ZV
=$1200 【U】 !5p 01]7
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Efficiency variance of $1200 【U】 due to the higher quantity of materials per unit of 1.6 kg/unit than the standard level of 1.5 kg/unit. Na [bCt
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C：Total variance of direct materials=actual costs- standard cost KqB(W ,$
=18560-18000 F5E KWP
=560 【U】 jQ`cfE$sV
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