• Q : Constant growth dividend discount model....
    Accounting Basics :

    According to the constant growth dividend discount model, an increase in the dividend growth rate of a stock will (everything else equal):

  • Q : Annual operating budget....
    Accounting Basics :

    Imagine you are the financial manager of a corporation responsible for approving next year's annual operating budget. The Marketing, R&D (Research and Development) and G&A (General & Adm

  • Q : Determine earnings per share....
    Accounting Basics :

    A firm has 1.5 million shares outstanding. EBIT is $5 million and interest paid is $2 million. If the corporate tax rate is 35%, what is earnings per share?

  • Q : Companies margins and profitability....
    Accounting Basics :

    I need to identify and describe at least three of the largest variable expenses for Microsoft and Novell, Inc's most recent fiscal years. Explain the financial impact each of those expenses has had

  • Q : Consolidated entity recognize a goodwill impairment loss....
    Accounting Basics :

    Problem 1: When should a consolidated entity recognize a goodwill impairment loss?

  • Q : Case scenario-tax implications....
    Accounting Basics :

    Alisa wants to know if it makes any difference when she exercises the options. She also wants to know what the tax implications will be when she sells the stock.

  • Q : Performance evaluation seeks to achieve goal congruence....
    Accounting Basics :

    Problem: What do you think the following statement means?: "Performance evaluation seeks to achieve goal congruence and managerial effort."

  • Q : Accounting period for tax purposes....
    Accounting Basics :

    What is meant by accounting period for tax purposes? What are the general rules regarding selection of an accounting period for tax purposes?

  • Q : Compute jti projected operating profit....
    Accounting Basics :

    Q1. Compute JTI's break-even point for the number of luggage sets and dollars of sales. Q2. Suppose JTI plans to sell 3,600 luggage sets in 2008. Compute JTI's projected operating profit.

  • Q : Compute depreciation for current....
    Accounting Basics :

    In April of year 1, James bought 20 venting machines for $60,000; in April of year 2, he bought 20 more machines for $65,000; in June of the current year, he purchased 10 more vending machines for $

  • Q : Overstated net income in the prior year financial statement....
    Accounting Basics :

    As the CFO of SAL Inc., you discover a misstatement that overstated net income in the prior year’s financial statements. The misleading financial statements appear in the company’s annua

  • Q : Methods of marking up merchandise....
    Accounting Basics :

    Compare and contrast the three methods of marking up merchandise (based on cost, based on selling price, and marking up perishables).

  • Q : Eliminating entries with negative goodwill....
    Accounting Basics :

    Required: a. Compute the amount of negative goodwill at the date of acquisition. b. Give the eliminating entry or entries required immediately following the acquisition to prepare a consolidated balan

  • Q : Determine the amount of manufacturing overhead applied....
    Accounting Basics :

    Samli applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over or underapplied

  • Q : Costs of capital for different divisions with the firm....
    Accounting Basics :

    When would a firm use different costs of capital for different divisions with the firm? If the firm was to try to determine cost of capital for different divisions, what problems could occur? What t

  • Q : Maxims of tax planning....
    Accounting Basics :

    The four "maxims" of tax planning are relatively straightforward, and don't need rehashing here. The text also mentions considering "nontax" factors, which is often times a very important and very o

  • Q : Inventory holding costs....
    Accounting Basics :

    All of the following are considered inventory holding costs EXCEPT:

  • Q : Cash receipts and payment of personal expenses....
    Accounting Basics :

    Employee Embezzlement via Cash Receipts and Payment of Personal Expenses. This case gives the problem, the method, the audit trail, and the amount. In this case, you can assume you have received the

  • Q : What is a gap analysis-end state goal....
    Accounting Basics :

    Question 1: What is a Gap Analysis ? How do you determine the gap between the current situation and the end state goals? Question 2: What is an end state goal??

  • Q : Financial accounting depreciation deductions....
    Accounting Basics :

    Q1. Determine its financial accounting depreciation deductions for years 2003 through 2006. Q2. Determine its gains and losses on property transactions for financial accounting in 2006.

  • Q : Compute depreciation expense for particular year....
    Accounting Basics :

    Castlevania Corporation purchased a truck at the beginning of 2007 for $42,000. The truck is estimated to have a salvage value of $2,000 and a useful life of 160,000 miles. It was driven 23,000 mile

  • Q : Production on the basis of a predetermined rate....
    Accounting Basics :

    If a company applies overhead to production on the basis of a predetermined rate, a debit balance in the Manufacturing Overhead account at the end of the period means that:

  • Q : Contribution to net operating income....
    Accounting Basics :

    Problem: The following information pertains to Nova Company's Cost-Volume-Profit relationships:How much will be contributed to Net Operating Income by the 1,001st unit sold?

  • Q : Evaluating employee compensation plans....
    Accounting Basics :

    Problem: Why would a CFO be interested in evaluating the employees and employee compensation plans during a due diligence process?

  • Q : Significant decline in market value....
    Accounting Basics :

    Club Co. appropriately uses the equity method to account for its investment in Chip Corp. As of the end of 2004, Chip's common stock had suffered a significant decline in market value, which is expe

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