2012 AICPA Newly Released Questions – Business – Helppppppppppppppppppp plz

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  • May 17, 2012 at 4:17 pm #170895
    Anonymous
    Inactive

    I dont get it why these are the correct answers for the following two questions !!

    First one :-

    11. CPA

    Co. has the following financial information:

    Fixed costs $20,000

    Variable costs 60%

    Sales price $50

    What amount of sales is required for Brewster to achieve a 15% return on sales?

    a. $33,333

    b. $50,000

    c. $80,000

    d. $133,333

    Explanation

    Choice “c” is correct.

    2nd one :-

    26. CPA

    The stock of Fargo Co. is selling for $85. The next annual dividend is expected to be $4.25 and is

    expected to grow at a rate of 7%. The corporate tax rate is 30%. What percentage represents the firm’s

    cost of common equity?

    a. 12.0%.

    b. 8.4%.

    c. 7.0%.

    d. 5.0%.

    Explanation

    Choice “a” is correct.

    Please help !!

Viewing 15 replies - 1 through 15 (of 30 total)
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  • May 17, 2012 at 4:28 pm #345107
    Shay
    Member

    Question #1

    Main Formula you need: you are solving for # of units (which is x)

    Sales = FC + VC + Profit

    VC== $50 x 60% === $30

    Sales==Selling Price x # of units

    VC==Selling Price x # of units

    Profit== 15% x Sales===15% x $50x===7.5x

    Equation:

    50x==$20,000 + 30x + 7.5x

    50x==$20,000 + 37.5x

    12.5x ==$20,000

    x===1600 units

    Sales=1600 units x $50= $80,000

    Question # 2

    Formula

    (Divided / Net proceed) + growth rate

    $4.25 / $85== 5% + 7% ==12%.

    Question 1 is mentioned in Wiley and Question 2 is mention in Becker.

    I am so happy they released 2012 question just days before my exam… REVIEW TIME!!

    MISTAKE CORRECTED thanks sbruce810

    May 17, 2012 at 4:45 pm #345108
    sbruce810
    Participant

    I just wanted to highlight one mistake in the post above. The formula for question 1 should be 50X = 20,000 + 30X + 7.5X instead of 50X = 20,000 + 30X + .15X.

    AUD - Passed
    BEC - Passed
    FAR - Passed
    REG - Passed

    Done

    May 17, 2012 at 5:32 pm #345109
    Anonymous
    Inactive

    @sbruce810 + @Shay – Thanks very much

    What about this please :

    12. CPAThe

    following information is available on market interest rates:

    The risk-free rate of interest 2%

    Inflation premium 1%

    Default risk premium 3%

    Liquidity premium 2%

    Maturity risk premium 1%

    What is the market rate of interest on a one-year U.S. Treasury bill?

    a. 3%

    b. 5%

    c. 6%

    d. 7%

    Explanation

    Choice “a” is correct.

    May 17, 2012 at 9:10 pm #345110
    Anonymous
    Inactive

    Any help please !!

    May 17, 2012 at 9:21 pm #345111
    Shay
    Member

    I think, this is how it is

    Real rate of return + Inflation Premium= Risk-free rate (which is sometimes called Nominal Risk-free)

    Becker 2012ed (B6-38)

    when is your exam?

    May 17, 2012 at 9:44 pm #345112
    Anonymous
    Inactive

    31 May … thanx dear

    May 17, 2012 at 10:17 pm #345113
    Shay
    Member

    what study materials are you using? is this your first exam

    May 17, 2012 at 10:26 pm #345114
    Givemesleep
    Member

    Somebody please tell me where I can find 2012 AICPA released

    Questions for BEC, please I beg. Seems unlikely these are out.

    Reg 11/15/2011 - 80
    Aud 02/28/2012 - 81
    Bec 05/31/2012 - 78
    Far 08/31/2012 - 83 Do you believe in Miracles, YES !!!

    CPA License received 10/2012 !!
    CFE License received 04/2013 !!
    EA License received

    Givemesleep

    May 17, 2012 at 10:31 pm #345115
    Anonymous
    Inactive

    @Givemesleep

    here is the link and good luck studying:

    https://beckerkb.custhelp.com/app/answers/detail/a_id/841

    May 17, 2012 at 10:31 pm #345116
    Shay
    Member

    gotten love google

    try this first

    then

    (just a joke)

    Created with Compare Ninja

    May 17, 2012 at 10:36 pm #345117
    jeff
    Keymaster

    hey … look whos #1 in that google ranking 😉

    May 17, 2012 at 10:56 pm #345118
    Anonymous
    Inactive

    @Jeff

    Looooooooooooooooool :)))

    May 18, 2012 at 1:00 pm #345119
    Givemesleep
    Member

    Thank you all for the link to the 2012 questions. I am running out of material. Did all the Wiley on line twice at least, did all AICPA 2007 – 2011 and all CPAreviewforfree. Also did most of the Wiley homework book. Watched all Roger videos and the cram. Obviously I want to pass this section so much as you can tell from my preparation. I must move on to the my last part for mental reasons ! Just trying to keep things fresh untill 5/31 – test day.

    Reg 11/15/2011 - 80
    Aud 02/28/2012 - 81
    Bec 05/31/2012 - 78
    Far 08/31/2012 - 83 Do you believe in Miracles, YES !!!

    CPA License received 10/2012 !!
    CFE License received 04/2013 !!
    EA License received

    Givemesleep

    May 19, 2012 at 4:47 am #345120
    Anonymous
    Inactive

    What did you guys think if the 2012 release questions?

    May 19, 2012 at 9:36 am #345121
    Givemesleep
    Member

    I thought they were ok, harder than 2009-2011 released questions. But

    Manageable.

    Reg 11/15/2011 - 80
    Aud 02/28/2012 - 81
    Bec 05/31/2012 - 78
    Far 08/31/2012 - 83 Do you believe in Miracles, YES !!!

    CPA License received 10/2012 !!
    CFE License received 04/2013 !!
    EA License received

    Givemesleep

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