Acct 551 Final Exam (Questions with Answers)

25. In a science fiction movie, an officer is implementing an experimental process to prevent a catastrophic geologic event affecting a primitive indigenous alien population. A crew of a starship vessel is willing to save him; however, environmental conditions prevent simple extraction. The commander refuses to let the crew extract the officer, proclaiming “the needs of the many outweigh the needs of the few, or in this case, one.” The commander’s conclusion is based on which moral theory?

1. If Middlesex increases its cash dividends in 2012 at the same rate of growth as its Net Income rate, what will be the total 2012 dividend payout in Dollars?

23. Ivy has preferred stock selling for 98 percent of par that pays a 7 percent annual coupon. What would Ivy’s component cost of preferred stock ?

B) a transaction in which the third party does not know the identity of the agent

Consolidated Company makes cardboard boxes. During the most recent accounting period Consolidated paid $60,000 for raw materials, $48,000 for labor, and $52,000 for overhead costs that were incurred to make boxes. Consolidated started and completed 400,000 boxes. Based on this information, what is the average manufacturing cost per box?

California Surf Clothing Company issues 1,300 shares of $7 par value common stock at $22 per share. Later in the year, the company decides to repurchase 130 shares at a cost of $35 per share.

(TCO 6, 7) The local newspaper reports that a middle school had been broken into, damaged, and vandalized to the tune of $50,000. Security cameras show the vandals were four high school students, three of whom are on the honor roll. Compare and contrast the explanation given by labeling theory to the explanation given by anomie theory of deviance.

Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of

Acme Mfg currently is all-equity financed, with 2 mm shares outstanding at a current price of $40/sh. The firm announces they will raise $8 mm by issuing new equity to fund a new project (assume investors expect the NPV of the new project is 0).

B ) A theory is an integrated explanation of numerous hypotheses, each supported by a large body of observations and experiments.

- A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,200 and other assets of $10,800. Equity is worth $12,000. The firm has 750 shares of stock outstanding and net income of $775. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?

1. The City of Newport issued $1,500,000 of general obligation refunding bonds at a 2%

uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company 's manufacturing overhead data:

On the benefit side, James estimated that the new process would save $202,500 per year in environmental costs by eliminating fines and clean-up costs. The cost of capital is 10%.

Dividend rate = 10% = 0.1 Total book value = $1,000,000; No. of preferred share = total book value / par value = 1,000,000/100 = 10,000 Price of preferred share = Dividend / Cost of preferred share = 10*0.1/0.08 = $125 Total market value of preferred share = $125 * number of pref. share = 125* 10000 = 1,250,000