Given three possible investments in a company, an appropriate return for each would be: Capital creditor 6%7%8% , Preference share 7%8%6% , Common share 7%8%6% .
The reason why capital creditors have the smallestlargestmiddle return is because they get paid first and take the highest riskthey get paid first and take the lowest riskthey get paid last and take the highest riskthey get paid last and take the lowest risk . If you wish to have voting rights for a company's board of directors, you need to be a preference shareholdercommon shareholdercapital creditor .
Part B
Company A has a share price of $0.02, $0 of earnings and 1 million shares outstanding. Company B has a share price of $200, $200 million in earnings and 20 million in shares outstanding. Company C has a share price of $36, $600,000 in earnings and 1 million in shares outstanding.
Given the above information, Company BCompany CCompany A is the most expensive company and Company ACompany BCompany C is the most likely to be a value stock.
In: Accounting
True or False to the following questions:
A life insurance policy naming a spouse or dependents as beneficiaries is an example of the impact of family structure on financial decisions:
Your willingness and ability to assume risk increases with dependents, and a desire for more financial protection decreases.
Personal financial planning includes decision making about education, employment, housing, transportation, and lifestyle.
Financial decisions are based on personal goals, opportunities, and risks.
Most people begin their independent financial lives by selling their labor to create an income.
Taking a second job, becoming unemployed, entering a new career, or becoming self employed are as important as career choices in personal financial planning.
Sound personal financial planning is based on a thorough understanding of your personal circumstances and goals.
Personal financial planning includes decision making about earning, spending, saving, and investing.
Because of unpredictability, how you finance your life does not significantly affect the life you live
| Personal financial planning is a life-long process, not just for when you are starting out. | |
In: Finance
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 6,600 of these meals using 1,950 direct labor-hours. The company paid its direct labor workers a total of $27,300 for this work, or $14.00 per hour. According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $13.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,600 meals? 2. What is the standard labor cost allowed (SH × SR) to prepare 6,600 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.)
In: Accounting
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 6,300 of these meals using 1,800 direct labor-hours. The company paid its direct labor workers a total of $18,000 for this work, or $10.00 per hour.
According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $9.20 per hour.
Required:
1. What is the standard labor-hours allowed (SH) to prepare 6,300 meals?
2. What is the standard labor cost allowed (SH × SR) to prepare 6,300 meals?
3. What is the labor spending variance?
4. What is the labor rate variance and the labor efficiency variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.)
In: Accounting
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,800 of these meals using 1,400 direct labor-hours. The company paid its direct labor workers a total of $18,200 for this work, or $13.00 per hour.
According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $12.50 per hour.
Required:
1. What is the standard labor-hours allowed (SH) to prepare 4,800 meals?
2. What is the standard labor cost allowed (SH × SR) to prepare 4,800 meals?
3. What is the labor spending variance?
4. What is the labor rate variance and the labor efficiency variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
In: Accounting
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below.
Data for the Maintenance Department follow:
| Budget | Actual | ||||
| Variable costs for lubricants | $ | 345,000 | * | $ | 442,500 |
| Fixed costs for salaries and other | $ | 216,000 | $ | 232,600 | |
*Budgeted at $23 per machine-hour.
Data for the Forming and Assembly Departments follow:
| Percentage of Peak-Period Capacity Required |
Machine-Hours | ||
| Budget | Actual | ||
| Forming Department | 75% | 9,800 | 11,800 |
| Assembly Department | 25% | 5,200 | 4,200 |
| Total | 100% | 15,000 | 16,000 |
The level of fixed costs in the Maintenance Department is determined by peak-period requirements.
Required:
1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department?
2. How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments?
In: Accounting
Lido Company's standard and actual costs per unit for the most recent period, during which 400 units were actually produced, are given below: Standard Actual Materials: Standard: 2 metres. at $1.50 per metre $3.00 Actual: 2.1 metres at $1.60 per metre $3.36 Direct labour: Standard: 1.5 hrs. at $6.00 per hr. 9.00 Actual: 1.4 hrs. at $6.50 per hr. 9.10 Variable overhead: Standard: 1.5 hrs. at $3.40 per hr. 5.10 Actual: 1.4 hrs. at $3.10 per hr. 4.34 Total unit cost $17.10 $16.80 All materials used were purchased during the period - there were no opening or closing inventories. Required: From the foregoing information, compute the following variances. Show whether the variance is favourable (F) or unfavourable (U): 1. Material price variance 2. Material quantity variance 3. Direct labour rate variance 4. Direct labour efficiency variance 5. Variable overhead spending variance 6. Variable overhead efficiency variance
In: Accounting
How much will be in your bank account at the end of five years if you invest $10,000 now at 12% per annum, compounded annually? And what if the interest rate is 12% per annum, but compounded monthly?
b) In the poor areas of many cities around the world, we find people offering `pay-day’ loans. One loan agency in Dacca offers to loan Gita $20 till her pay cheque arrives in two weeks time. When it arrives, she must pay back the $20 plus a $2 service charge. What is the effective annual interest rate she is paying on the loan?
c) An oil pipeline is about to be constructed across BC. Some environmentalists are concerned that with the present design, there is a high probability that oil will leak in about 100 years time. If that happens, about 10 billion dollars worth of arable land will be rendered unusable. What is the most it is worth spending now in order to prevent this loss in the future? (Assume that if the money is not spent now, it can be invested at 5% interest.
In: Economics
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 3,400 of these meals using 1,300 direct labor-hours. The company paid its direct labor workers a total of $16,900 for this work, or $13.00 per hour.
According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $12.00 per hour.
Required:
1. What is the standard labor-hours allowed (SH) to prepare 3,400 meals?
2. What is the standard labor cost allowed (SH × SR) to prepare 3,400 meals?
3. What is the labor spending variance?
4. What is the labor rate variance and the labor efficiency variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.)
In: Accounting
Answer the following question in a minimum of two paragraphs.
Bob wants to form a company with Bill but is concern about expenses and taxes. Bill is known to be careless with money and seems to always have debt issues. If you were to advise Bob, what you recommend regarding his options in forming a business (partnership, corporation, Limited Liability Company)? Explain the consequences of your options.
A person named Rein petway answered with
the most suitable form of business that Bob can choose for his company is an LLC. It is a form suitable for new small businesses that involved more people but require limited liability of each. A partnership firm will not provide limited liability and thus all expenses, liabilities will have to be shared along with the profits and decisions. This will make it difficult to run the business with Bill's careless money spending behaviors. A corporation will provide limited liability advantage but has double taxation involved which will increase the taxation and expenses issue for Bob.
chegg, it is your job to respond to Rein Petways response with at least two paragraph!
In: Operations Management