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Which of the following control types has the highest risk to the owner:A Firm fixed price (FFP)B Time and material (TM)C Cost plus fixed fee (CPFF)D Cost plus incentive fee (CPIF)E A and B only
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132 Which of the following contract types has the highest risk to the contractor:A. Firm fixed price (FFP)B. Time and material (TM)C. Cost plus fixed fee (CPFF)D. Cost plus incentive fee (CPIF)E. A and B only
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M company is a manufactory which produces toys.The budgeted production and sales of the company are both expected to be 200 units in the coming year,the budgemd selling price is$370 per unit.The following information mimes to the costs of producin9 200 toys:Per unit($)Total($)Direct material costsl 5030 000Direct labor costs801 6 000Variable production overheads501 0 000Variable selling and administration overheads306 000Fixed production overheads6 000Fixed selling and administration overheads3 000Requirement:A.Calculate the total contribution margin.B.Calculate the amounts of profit at the budgeted level of production.C.Calculate the break-even point in units and the margin of safety.D.If M company desires a profit of$4 800,calculate the number of units that it must produce and sell.
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For the year just ended,N company had an earnings of$2 per share and paid a dividend of $1.2 0n its Stock.The growth rate in net income and dividend are both expected to be a constant 7 percent per year,indefinitely.N company has a Beta of 0.8,the risk-free interest rate is 6 percent,and the market risk premium is 8 percent.P Company is very similar to N company in growth rate,risk and dividend payout rati0.It had 20 million shares outstanding and an earnings of$36 million for the year just ended.The earnings will increase to$38.5 million the next year.Requirement:A.Calculate the expected rate of return on N company’S equity.B.Calculate N Company’S current price—eaming ratio and prospective price-earning rati0.C.Using N company’S current price-earning rati0,value P company’S stock price.D.Using N company’S prospective price-earning rati0,value P company’S stock price.
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(c) Calculate the theoretical ex rights price per share and the net funds to be raised by the rights issue, anddetermine and discuss the likely effect of the proposed expansion on:(i) the current share price of Merton plc;(ii) the gearing of the company.Assume that the price–earnings ratio of Merton plc remains unchanged at 12 times. (11 marks)
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18 Which of the following statements about accounting ratios and their interpretation are correct?1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.2 If a company has a high price earnings ratio, this will often indicate that the market expects its profits to rise.3 All companies should try to achieve a current ratio (current assets/current liabilities) of 2:1.A 2 and 3 onlyB 1 and 3 onlyC 1 and 2 onlyD All three statements are correct
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4 Ryder, a public limited company, is reviewing certain events which have occurred since its year end of 31 October2005. The financial statements were authorised on 12 December 2005. The following events are relevant to thefinancial statements for the year ended 31 October 2005:(i) Ryder has a good record of ordinary dividend payments and has adopted a recent strategy of increasing itsdividend per share annually. For the last three years the dividend per share has increased by 5% per annum.On 20 November 2005, the board of directors proposed a dividend of 10c per share for the year ended31 October 2005. The shareholders are expected to approve it at a meeting on 10 January 2006, and adividend amount of $20 million will be paid on 20 February 2006 having been provided for in the financialstatements at 31 October 2005. The directors feel that a provision should be made because a ‘valid expectation’has been created through the company’s dividend record. (3 marks)(ii) Ryder disposed of a wholly owned subsidiary, Krup, a public limited company, on 10 December 2005 and madea loss of $9 million on the transaction in the group financial statements. As at 31 October 2005, Ryder had nointention of selling the subsidiary which was material to the group. The directors of Ryder have stated that therewere no significant events which have occurred since 31 October 2005 which could have resulted in a reductionin the value of Krup. The carrying value of the net assets and purchased goodwill of Krup at 31 October 2005were $20 million and $12 million respectively. Krup had made a loss of $2 million in the period 1 November2005 to 10 December 2005. (5 marks)(iii) Ryder acquired a wholly owned subsidiary, Metalic, a public limited company, on 21 January 2004. Theconsideration payable in respect of the acquisition of Metalic was 2 million ordinary shares of $1 of Ryder plusa further 300,000 ordinary shares if the profit of Metalic exceeded $6 million for the year ended 31 October2005. The profit for the year of Metalic was $7 million and the ordinary shares were issued on 12 November2005. The annual profits of Metalic had averaged $7 million over the last few years and, therefore, Ryder hadincluded an estimate of the contingent consideration in the cost of the acquisition at 21 January 2004. The fairvalue used for the ordinary shares of Ryder at this date including the contingent consideration was $10 per share.The fair value of the ordinary shares on 12 November 2005 was $11 per share. Ryder also made a one for fourbonus issue on 13 November 2005 which was applicable to the contingent shares issued. The directors areunsure of the impact of the above on earnings per share and the accounting for the acquisition. (7 marks)(iv) The company acquired a property on 1 November 2004 which it intended to sell. The property was obtainedas a result of a default on a loan agreement by a third party and was valued at $20 million on that date foraccounting purposes which exactly offset the defaulted loan. The property is in a state of disrepair and Ryderintends to complete the repairs before it sells the property. The repairs were completed on 30 November 2005.The property was sold after costs for $27 million on 9 December 2005. The property was classified as ‘held forsale’ at the year end under IFRS5 ‘Non-current Assets Held for Sale and Discontinued Operations’ but shown atthe net sale proceeds of $27 million. Property is depreciated at 5% per annum on the straight-line basis and nodepreciation has been charged in the year. (5 marks)(v) The company granted share appreciation rights (SARs) to its employees on 1 November 2003 based on tenmillion shares. The SARs provide employees at the date the rights are exercised with the right to receive cashequal to the appreciation in the company’s share price since the grant date. The rights vested on 31 October2005 and payment was made on schedule on 1 December 2005. The fair value of the SARs per share at31 October 2004 was $6, at 31 October 2005 was $8 and at 1 December 2005 was $9. The company hasrecognised a liability for the SARs as at 31 October 2004 based upon IFRS2 ‘Share-based Payment’ but theliability was stated at the same amount at 31 October 2005. (5 marks)Required:Discuss the accounting treatment of the above events in the financial statements of the Ryder Group for the yearended 31 October 2005, taking into account the implications of events occurring after the balance sheet date.(The mark allocations are set out after each paragraph above.)(25 marks)
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5 An enterprise has made a material change to an accounting policy in preparing its current financial statements.Which of the following disclosures are required by IAS 8 Accounting policies, changes in accounting estimatesand errors in these financial statements?1 The reasons for the change.2 The amount of the consequent adjustment in the current period and in comparative information for prior periods.3 An estimate of the effect of the change on future periods, where possible.A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD All three items
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2 Ice-Time Ltd (ITL) manufactures a range of sports equipment used in a variety of winter-sports in Snowland.Development engineers within ITL have recently developed a prototype of a small engine-propelled bobsleigh namedthe ‘Snowballer’, which has been designed for use by young children. The directors of ITL recently spent £200,000on market research, the findings of which led them to believe that a market exists for the Snowballer.The marketing director has suggested that ITL should use the ‘Olympic’ brand in order to market the Snowballer.The finance director of ITL has gathered relevant information and prepared the following evaluation relating to theproposed manufacture and sale of the Snowballer.(1) Sales are expected to be 3,200 units per annum at a selling price of £2,500 per unit.(2) Variable material, labour, and overhead costs are estimated at £1,490 per unit.(3) In addition, a royalty of £150 per unit would be payable to Olympic plc, for the use of their brand name.(4) Fixed overheads are estimated at £900,000 per annum. These overheads cannot be avoided until the end of theyear in which the Snowballer is withdrawn from the market.(5) An initial investment of £5 million would be required. A government grant equal to 50% of the initial investmentwould be received on the date the investment is made. However, because the Snowballer would be classified asa luxury good, no tax allowances would be available on this initial investment. The estimated life cycle of theSnowballer is six years.(6) Corporation tax at the rate of 30% per annum is payable in the year in which profit occurs.(7) All cash flows are stated in current prices and, with the exception of the initial investment and the governmentgrant, will occur at the end of each year.(8) The nominal cost of capital is 15·44%. Annual inflation during the period is expected to amount to 4%.Required:(a) Calculate the net present value (NPV) of the Snowballer proposal and recommend whether it should beundertaken by the directors of ITL. (4 marks)
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(ii) Division C is considering a decision to lower its selling price to customers external to the group to $95per kilogram. If implemented, this decision is expected to increase sales to external customers to70,000 kilograms.Required:For BOTH the current selling price of CC of $105 per kilogram and the proposed selling price of $95per kilogram, prepare a detailed analysis of revenue, costs and net profits of BAG.Note: in addition, comment on other considerations that should be taken into account before this sellingprice change is implemented. (6 marks)
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听力原文:M: Good news! The current price of land we bought last year has increased greatly. How about reporting it in the profit and loss account?W: Wait a minute. According to the Prudence Concept, if the market price is higher than the cost, the higher amount is ignored in the accounts.Q: Why can't they record the gains right now?(16)A.Because of the prudence concept.B.Because of the materiality concept.C.Because of the matching principle.D.Because of the Dual Aspects Concept.
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The _______ price in our market is $8 per case.
A.prevalenceB.prevailingC.prevailedD.prevail
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The primary purpose of a stock split include ().
A.to increase the number of shares outstandingB.reduce the market price of the stock per shareC.reduce earnings per shareD.increase the market activity of the sharesE.increase paid-in capital
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The primary purpose of a stock split is to ( )A. increase paid-in capitalB. reduce the market price of the stock per shareC. increase the market price of the stock per shareD. increase retained earnings
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A manufacturing company, Man Co, has two divisions: Division L and Division M. Both divisions make a single standardised product. Division L makes component L, which is supplied to both Division M and external customers.Division M makes product M using one unit of component L and other materials. It then sells the completedproduct M to external customers. To date, Division M has always bought component L from Division L.The following information is available:Division L charges the same price for component L to both Division M and external customers. However, it does not incur the selling and distribution costs when transferring internally.Division M has just been approached by a new supplier who has offered to supply it with component L for $37 per unit. Prior to this offer, the cheapest price which Division M could have bought component L for from outside the group was $42 per unit.It is head office policy to let the divisions operate autonomously without interference at all.Required:(a) Calculate the incremental profit/(loss) per component for the group if Division M accepts the new supplier’soffer and recommend how many components Division L should sell to Division M if group profits are to bemaximised. (3 marks)(b) Using the quantities calculated in (a) and the current transfer price, calculate the total annual profits of each division and the group as a whole. (6 marks)(c) Discuss the problems which will arise if the transfer price remains unchanged and advise the divisions on a suitable alternative transfer price for component L. (6 marks)
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KFP Co, a company listed on a major stock market, is looking at its cost of capital as it prepares to make a bid to buy a rival unlisted company, NGN. Both companies are in the same business sector. Financial information on KFP Co and NGN is as follows:NGN has a cost of equity of 12% per year and has maintained a dividend payout ratio of 45% for several years. The current earnings per share of the company is 80c per share and its earnings have grown at an average rate of 4·5% per year in recent years.The ex div share price of KFP Co is $4·20 per share and it has an equity beta of 1·2. The 7% bonds of the company are trading on an ex interest basis at $94·74 per $100 bond. The price/earnings ratio of KFP Co is eight times.The directors of KFP Co believe a cash offer for the shares of NGN would have the best chance of success. It has been suggested that a cash offer could be financed by debt.Required:(a) Calculate the weighted average cost of capital of KFP Co on a market value weighted basis. (10 marks)(b) Calculate the total value of the target company, NGN, using the following valuation methods:(i) Price/earnings ratio method, using the price/earnings ratio of KFP Co; and(ii) Dividend growth model. (6 marks)(c) Discuss the relationship between capital structure and weighted average cost of capital, and comment onthe suggestion that debt could be used to finance a cash offer for NGN. (9 marks)
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PV Co is evaluating an investment proposal to manufacture Product W33, which has performed well in test marketing trials conducted recently by the company’s research and development division. The following information relating to this investment proposal has now been prepared.Initial investment $2 millionSelling price (current price terms) $20 per unitExpected selling price inflation 3% per yearVariable operating costs (current price terms) $8 per unitFixed operating costs (current price terms) $170,000 per yearExpected operating cost inflation 4% per yearThe research and development division has prepared the following demand forecast as a result of its test marketing trials. The forecast reflects expected technological change and its effect on the anticipated life-cycle of Product W33.It is expected that all units of Product W33 produced will be sold, in line with the company’s policy of keeping no inventory of finished goods. No terminal value or machinery scrap value is expected at the end of four years, when production of Product W33 is planned to end. For investment appraisal purposes, PV Co uses a nominal (money) discount rate of 10% per year and a target return on capital employed of 30% per year. Ignore taxation.Required:(a) Identify and explain the key stages in the capital investment decision-making process, and the role ofinvestment appraisal in this process. (7 marks)(b) Calculate the following values for the investment proposal:(i) net present value;(ii) internal rate of return;(iii) return on capital employed (accounting rate of return) based on average investment; and(iv) discounted payback period. (13 marks)(c) Discuss your findings in each section of (b) above and advise whether the investment proposal is financially acceptable. (5 marks)
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JJG Co is planning to raise $15 million of new finance for a major expansion of existing business and is considering a rights issue, a placing or an issue of bonds. The corporate objectives of JJG Co, as stated in its Annual Report, are to maximise the wealth of its shareholders and to achieve continuous growth in earnings per share. Recent financial information on JJG Co is as follows:Required:(a) Evaluate the financial performance of JJG Co, and analyse and discuss the extent to which the company has achieved its stated corporate objectives of:(i) maximising the wealth of its shareholders;(ii) achieving continuous growth in earnings per share.Note: up to 7 marks are available for financial analysis.(12 marks)(b) If the new finance is raised via a rights issue at $7·50 per share and the major expansion of business hasnot yet begun, calculate and comment on the effect of the rights issue on:(i) the share price of JJG Co;(ii) the earnings per share of the company; and(iii) the debt/equity ratio. (6 marks)(c) Analyse and discuss the relative merits of a rights issue, a placing and an issue of bonds as ways of raising the finance for the expansion. (7 marks)
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(a) The following figures have been calculated from the financial statements (including comparatives) of Barstead forthe year ended 30 September 2009:increase in profit after taxation 80%increase in (basic) earnings per share 5%increase in diluted earnings per share 2%Required:Explain why the three measures of earnings (profit) growth for the same company over the same period cangive apparently differing impressions. (4 marks)(b) The profit after tax for Barstead for the year ended 30 September 2009 was $15 million. At 1 October 2008 the company had in issue 36 million equity shares and a $10 million 8% convertible loan note. The loan note will mature in 2010 and will be redeemed at par or converted to equity shares on the basis of 25 shares for each $100 of loan note at the loan-note holders’ option. On 1 January 2009 Barstead made a fully subscribed rights issue of one new share for every four shares held at a price of $2·80 each. The market price of the equity shares of Barstead immediately before the issue was $3·80. The earnings per share (EPS) reported for the year ended 30 September 2008 was 35 cents.Barstead’s income tax rate is 25%.Required:Calculate the (basic) EPS figure for Barstead (including comparatives) and the diluted EPS (comparatives not required) that would be disclosed for the year ended 30 September 2009. (6 marks)
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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 $18560. A. Calculate the direct material price variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. B. Calculate the direct material quantity variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U).
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For the year just ended, N company had an earnings of$ 2 per share and paid a dividend of $ 1. 2 on its stock. The growth rate in net income and dividend are both expected to be a constant 7 percent per year, indefinitely. N company has a Beta of 0. 8, the risk - free interest rate is 6 percent, and the market risk premium is 8 percent.
P Company is very similar to N company in growth rate, risk and dividend. payout ratio. It had 20 million shares outstanding and an earnings of $ 36 million for the year just ended. The earnings will increase to $ 38. 5 million the next year.
Requirement :
A. Calculate the expected rate of return on N company 's equity.
B. Calculate N Company 's current price-earning ratio and prospective price - earning ratio.
C. Using N company 's current price-earning ratio, value P company 's stock price.
D. Using N company 's prospective price - earning ratio, value P company 's stock price.
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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.
Requirment :
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. 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.
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U).
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M company is a manufactory which produces toys.The budgeted production and sales of the company are both expected to be 200 units in the coming year, the budgeted selling price is $ 370 per unit. The following information mimes to the costs of producing 200 toys:
Per unit ($) Total ($)
Direct material costs 1 50 30 000
Direct labor costs 80 1 6 000
Variable production overheads 50 10 000
Variable selling and administration overheads 30 6 000
Fixed production overheads 6 000
Fixed selling and administration overheads 3 000
Requirement:
A.Calculate the total contribution margin.
B.Calculate the amounts of profit at the budgeted level of production.
C.Calculate the break - even point in units and the margin of safety.
D.If M company desires a profit of$4 800, calculate the number of units that it must produce and sell.
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Given the following table definition: STOCK: item VARCHAR(30) status CHAR(1) quantity INT price DEC(7,2) If items are indicated to be out of stock by setting STATUS to NULL and QUANTITY and PRICE to zero, which of the following statements would be used to update the STOCK table to indicate that all the items whose description begins with the letter "S" are out of stock?()A、UPDATE stock SET (status = NULL; quantity, price = 0) WHERE item LIKE S%B、UPDATE stock SET (status, quantity, price) = (NULL, 0, 0) WHERE item LIKE S%C、UPDATE stock SET status = NULL, SET quantity = 0, SET price = 0 WHERE item LIKE 'S%'D、UPDATE stock SET (status = NULL), (quantity = 0), (price = 0) WHERE item LIKE S%
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填空题The price of oil in the world market has (great) ____ increased in recent months.
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单选题Given the following table definition: STOCK: item VARCHAR(30) status CHAR(1) quantity INT price DEC(7,2) If items are indicated to be out of stock by setting STATUS to NULL and QUANTITY and PRICE to zero, which of the following statements would be used to update the STOCK table to indicate that all the items whose description begins with the letter "S" are out of stock?()A
UPDATE stock SET (status = NULL; quantity, price = 0) WHERE item LIKE S%B
UPDATE stock SET (status, quantity, price) = (NULL, 0, 0) WHERE item LIKE S%C
UPDATE stock SET status = NULL, SET quantity = 0, SET price = 0 WHERE item LIKE 'S%'D
UPDATE stock SET (status = NULL), (quantity = 0), (price = 0) WHERE item LIKE S%
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单选题Which of the following statements is closest in meaning to what was said in the recording?A
Counterfeiting has led to the drop of the price of desktop-publishing systems.B
Counterfeiting has gone mainstream since the price of desktop-publishing systems has dropped.C
Skilled crooks have led to the drop of the price of desktop-publishing systems.D
14% of the counterfeits seized this year were digitally produced, compared with 1% a decade ago.