Notes, summaries, assignments, exams, and exercises for Mathematics for Vocational training

Stock Valuation and WACC Examples

Problem 1: Constant Dividend Growth

Thomas Brothers is expected to pay a $0.35 per share dividend at the end of the year (D1 = $0.35). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return is 13%. What is the stock’s current price?

P0 = D1 / (r – g) = 0.35 / (0.13 - 0.06) = $5.00

Problem 2: Current Stock Price with Constant Growth

A stock just paid a dividend of D0 = $1.50. The required rate of return is r = 10%, and the constant growth rate is g = 4.0%. What is the current stock price?

P0 = D0(1+g) / (r – g) = 1.50(1 + 0.04) / (0.10 - 0.04) = $26.00

Problem 3: Expected Stock Price in One Year

Using your answer for problem 2, what is the expected stock price in one year...

Unit 6: Costing and Production Systems

1. Production Systems

The two common cost accumulation systems are job order costing and process costing. The election to use one or the other of these systems depends primarily on the nature of the product and the manufacturing process by which it is created. Process production and job-order production are the extreme possibilities when considering the heterogeneity of products. The difference between order accounting and section accounting is the aim of the cost system, and the difference between process costing and job costing is the method to assign the cost to products.

1.1. Job Order Costing System

Job order costing suits the processes where it is necessary to assign costs to a specific amount of production...

Descriptive Statistics

Classification and description of a dataset.

Statistical Inference

Interpreting results using descriptive techniques for decision-making.

Statistic

A numerical summary or descriptive feature of a total sample of research.

Frequency Polygon

A line graph usually plotted on a frequency histogram.

Experiment

A controlled procedure carried out to determine, demonstrate, or test a hypothesis; a process that yields an outcome.

Median

The midpoint of a data set.

Probability

Measures or quantitatively determines the possibility that an event occurs.

Objective Probability

Probability obtained through numerical calculations or empirical observations.

Classic Approach

Assumes that all events are equally likely to occur.

Event

A possible outcome or...

Types of Auditor Opinions

Unqualified Opinion

An unqualified opinion is issued when:

• The audit was performed without limitations in scope and in accordance with the National Technical Standards (NTA).
• The annual accounts have been prepared in accordance with accounting rules and Generally Accepted Accounting Principles (GAAP), consistent with prior years.
• The information, including supporting documentation, is sufficient for adequate comprehension.
• The financial statements, taken as a whole, fairly represent the company's business in accordance with the information available to the auditor.

Qualified Opinion

A qualified opinion is issued when the auditor concludes that there are significant circumstances that prevent the annual accounts from presenting...

Sampling Stage

Sample Size:

• Depends on population size
• The type of sample
• Feature (parameter) of the population that is analyzed
• The maximum permissible error in the estimation of the parameters

The Form: The information collected can be classified as:

• Acts or behaviors that can be compared
• Information: analyzes the degree of respondents' knowledge on specific topics
• Opinions or Judgments: such as perceived service quality
• Attitudes or predispositions of mind: We are looking for what is thought in relation to something
• Motives or explanations for specific behaviors: the question is, why certain views or acts?
• Possible future behavior: it may ask whether or not to consume a prepared product.

Concept and Structure of Questionnaires

The questionnaire is a way...

Payment Process

Payments can be made in cash or deferred. Cash payments can be made in different ways:

• Cash: A receipt will be issued to prove delivery.
• Bank Transfer: Cash deposited directly into a current account.
• Checks
• Credit and Debit Cards
• Letters of Credit

Other common payment instruments include:

• Bills of Exchange
• Promissory Notes

Checks

A check is a document regulated by law, instructing a bank to pay a specified amount from the drawer's funds to the payee. The drawer is entitled to dispose of these funds by check.

Key Parties in a Check Transaction

• Drawer (Maker): The person or entity who issues the check.
• Drawee (Bank): The bank ordered to pay the check.
• Payee (Holder): The person or entity to whom the check is payable.
• Endorser: The party who transmits

Differences Between Delivery Notes and Invoices

Delivery Note: A provisional document justifying the dispatch of goods. It does not include VAT.

Invoice: A definitive document providing legal accreditation. It is valid for any claim and includes VAT.

Another important difference is that invoices are legally required to be kept for 6 years, while retaining delivery notes is not mandatory for the same period.

Sales Transaction Documentation

Common documents involved in sales transactions include:

• The order sheet
• The delivery note
• The invoice
• The expenses sheet
• Remittance advice
• Receipt
• Voucher or promissory note
• Check
• Bill of exchange

What Are Quantity Discounts (Rappels)?

These are discounts granted by the seller to the buyer for purchasing goods exceeding...

Parties Involved in a Bill of Exchange

The issuance and circulation of a bill of exchange involves the following parties:

• The Drawer: The creditor who issues the bill of exchange, instructing the debtor to pay.
• The Drawee: The debtor who is obligated to pay the bill of exchange at maturity. The drawee may accept or reject the payment order. If accepted, the drawee becomes the acceptor.
• The Payee/Holder/Beneficiary: The person who holds the bill of exchange and is entitled to receive payment.

Form of Bills of Exchange

A bill of exchange must be issued on official forms or stamped paper issued by the State. The amount should be proportional to the value stated on the bill. Improper formatting may cause difficulties in pursuing action against the debtor...

Relatively Prime

When the greatest common factor of two numbers is 1

Rational Number

Any number that can be expressed as a ratio of two integers

Reciprocal

One of two numbers whose product is 1, also called multiplicative inverse

Relation

A set of ordered pairs

X Coordinate

The first number in an ordered pair; it tells the distance to move right or left from the origin (0,0)

Y Coordinate

The second number in an ordered pair; it tells the distance to move up or down from the origin (0,0)

X Axis

The horizontal axis on a coordinate plane

Y Axis

The vertical axis on a coordinate plane

Coordinate Plane

A plane formed by the intersection of a horizontal line (the x-axis) and a vertical line (the y-axis)

Vertical Line Test

A method for seeing if a graph represents a...

Phases of a File Report

Depending on the activity or inactivity of files, a file in healthcare (HC) can be categorized into three stages:

• Active Archive
• Passive File
• Historical Archive

• Active file: This is one that meets the active healthcare compliance (HHCC), i.e., records subject to continued use and consultation.
• Archive candidate: This is one that meets the inactive HHCC, i.e., one that you have to transfer from active files when a query in a time interval of 3 to 5 years is nil. These documents remain here until disposal or transfer to the historical archive.
• Historical Archive: This is where documentation is transferred from the passive file after 10 years without being consulted. These documents are kept permanently because they were not