Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their Christmas bonuses. None of the employees have reached the Social Security wage base for the year. What is the gross-up amount for each of the following employees?
a) The tax rate on bonuses is 28%.
b) The Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate.
c) Yves St. John, regular gross pay per period $1425 Kim Johnson, regular gross pay per period $2,400
d) Michael Hale, regular gross pay per period $2,240

Answer: I did not agree that the agreement of trial balance is an indication that all transactions have been properly recorded in the books of account .it only means that certain types of errors have not been made.

Explanation:

Trial balance is an account prepared in order to test the arithmetical accuracy of entries in the ledger account. When a double entry principle has been observed then the total of debit entry must equal the total of credit entry in the trial balance. The balancing of the two sides of the trial balance does not mean that the account is correct. It means that certain types of errors have not been made. In the sense that there are several types of error which will not affect the balancing of trial balance such as the compensating error, error of original entry, error of omission, error of commission and so on will not affect the balancing of trial balance.

Answer:

A.

Dr Cash 266,178

Cr Sales Revenue 243,741

Cr Unearned Warranty Revenue 22,437

b)Current Liabilities:Unearned Warranty Revenue 90,579

Long-term liabilities:Unearned Warranty Revenue 181,158

Explanation:

Teal Company

A.

Dr Cash (814*327) 266,178

Cr Sales Revenue 243,741

Cr Unearned Warranty Revenue (277*81) 22,437

b)Current Liabilities:Unearned Warranty Revenue 90,579

(327×277)

Long-term liabilities:Unearned Warranty Revenue 181,158

(90,579×2)

Answer:

The value of closing inventory using FIFO under perpetual inventory system is $9379

Explanation:

The FIFO or first in first out method is a method of inventory valuation which basis the value of ending inventory on the assumption that the inventories that were purchased first were the ones that were sold first and the closing or ending inventory is comprised of the most recent purchases.

The perpetual method of inventory recording makes real time record and changes in the inventory level as soon as a transaction relating to inventory occurs.

The ending inventory of the business can be calculated as follows:

Transaction                                      Purchases          Sale            Balance

1. Opening Inventory (100 * 103)                                                      10300

2. July 10 purchase (150 * 91)             13650                                   23950

3. July 15 sale (100*103 + 73*91)                                16943            7007

4. July 22 purchase (200 * 113)          22600                                  29607                        

5. July 30 sale (77*91 + 117*113)                                 20228           9379

Totals                                                  36250             37171              9379

Answer:

high-performance teams have members who focus on individual effort and excellence.

Explanation:

If team remembers focus on individual efforts and excellence ,it would lead to unnecessary competitions among team members. This can lead to conflict among members and this would be counterproductive.

I hope my answer helps you

Answer: Please refer to Explanation

Explanation:

June 30, 2020

DR Bond Interest Expense $18,284

DR Premium on Bonds Payable $1,966

CR Cash $20,250

(To record Payment of Bond Interest)

Workings

Cash

Semi Annual Payment of Interest means that the interest rate of 9% which is annual will be split into 2 to make it 4.5% to make it semi annual.

= 450,000 * 4.5%

= $20,250

Premium on Bonds Payable

The straight-line bond amortization method means that a Bond's Discount or Premium amount will be amortized in equal proportions for the duration of the bond's life.

Seeing as there are semi annual payments, the Premium will be amortized semi-annually.

There are 3 years so semi-annually would be,

= 3 * 2

= 6 periods.

Semi- Annual Bond Amortization for the premium is therefore,

= 11,795/6

= $1,966

Bond Interest Expense

= Cash - Premium on Bonds Payable

= 20,250 - 1,966

= $18,284

Answer:

a plant manager would be involved in a variety of tasks such as:

overseeing the plan and its daily operations that the manufacturing/production facility are in charge of

managing employees

increase production within the plant

implement and monitor safety procedures

might work on plants machinery or the planet management software

Answer: The firm can increase its profit by reducing its output.

Explanation:

Monopolistic Competitive Firms maximise profit at the point where MR = MC. This firm is producing at MC = P. This means that should the company want to make profit, they should reduce their output. This will have the effect of increasing their price and hence marginal revenue as well as reducing marginal cost to a point where MR = MC where they will then be maximising profit.

Answer:

(a) capacity=3.05hours

(b) utilisation percentage= 0.90 or 90%

(c) Average inventory=1.22

(d)Batch size of D700 is approximately equal to 7

Explanation:

(a)To calculate Capacity

=( Batch size) /(set up time + processing time)

= 12/ (32+17×12) = 12/236 minutes = (12/236) ×60 hours =

3.05 hours

(b)Capacity for assembly: = 113/6 = 18.8/minute = 60/18.8 = 3.19/hour as assembly takes 113 minutes per housing per worker and 6 workers are working at the moment Assembly time for batch of 12 housings = 12/3.19 hr = 3.77 hr CNC time for batch = 32+(17×12 )= 236 minutes = 3.93 hr Utilization of CNC: = (17*12)/60/3.766 = 0.902815 = 0

O.90 or 90%

(c)Average inventory = 1/2 ×batch size × (1-(capacity for assembly × 1/4))

= 1/2×12*(1-(3.186/4) = 1.22(Approximately)

(d)Total demand of all the housings = 0.4+0.5+0.6+0.7+0.8 = 3/hour

Setup time per housing = 32/60 hr = 0.53 hr

Setup time for 5 housings will be = 5×0.53 = 2.67 hr

The Processing time = 17/60 hr = 0.2833 hr

Total batch size = (2.67×3)/(1-3×0.2833) = 53.36

Batch size of D700 = 53.36*(0.4/3) = 7.11 = 7(approximately)

(a) The capacity is =3.05hours

(b) The utilization percentage is = 0.90 or 90%

(c) The Average inventory is =1.22

(d) when the Batch size of D700 is approximately equal to 7

(a) Now To calculate Capacity is:

Then =( Batch-size) /(set up time + processing time)

After that = 12/ (32+17×12) = 12/236 minutes = (12/236) ×60 hours =

3.05 hours

(b) When the Capacity for assembly is = 113/6 = 18.8/minute =  then 60/18.8 is = 3.19/hour as assembly takes 113 minutes per housing per worker and also 6 workers are working at the moment.

After that Assembly time for batch of 12 housings is = 12/3.19 hr = 3.77 hr Then C-N-C time for batch is = 32+(17×12 )= 236 minutes = 3.93 hr After that Utilization of C-N-C is = (17*12)/60/3.766 = 0.902815 = 0

O.90 or 90%

(c) Then the Average inventory is = 1/2 ×batch size × (1-(capacity for assembly × 1/4))

Then = 1/2×12*(1-(3.186/4) = 1.22(Approximately)

(d) Then the Total demand of all the housings is = 0.4+0.5+0.6+0.7+0.8 = 3/hour

After that Setup time per housing is = 32/60 hr = 0.53 hr

Then Setup time for 5 housings will be = 5×0.53 = 2.67 hr

Now The Processing time is = 17/60 hr = 0.2833 hr

After that Total batch size is = (2.67×3)/(1-3×0.2833) = 53.36

Then Batch-size of D700 is = 53.36*(0.4/3) = 7.11 = 7(approximately)

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Answer:

The method cost of eliminating 6 is stated below in the explanation section while,The regulation = 4500, The tradable pollution permits = 2700

Explanation:

Solution

Now,

Every Firm will remove the pollution until the cost of eliminating is lower than the cost of permit.

Thus,

Firm A will not eliminate any pollution as cost is higher than the permit cost, he will prefer to buy 2 more permits from other Firm

Firm B will eliminate 4 tons of pollution as cost is lower for elimination therefore will not require permit and thus sell his 2 permits to firm A.

Then

Firm C will eliminate 2 tons as after that cost is higher than the permit cost.

Firm A Action : Eliminate 2 tons and purchase 2 permits, Total tons eliminated 0

Firm B Action: Eliminate 4 tons and sell 2 permits, Total tons eliminated 4

Firm C Action : Eliminate 2 tons, Total Tons eliminated 2

If the government would have regulated then each firm would have to eliminate 2 tons each hence the cost would have been = 950+1650 + 280+300+600+720=4500

While with tradable permits cost is =280+300+350+450+600+720=2700

Answer and Explanation:

The journal entries are shown below:

A. Cash Dr $30,500

       To Sales revenue $30,500

(Being the merchandise is sold for cash)

For recording this we debited the cash as it increased the assets and credited the sales revenue as it also increased the revenue

Cost of goods sold Dr $16,165

       To Merchandise inventory $16,165

(being the cost of goods sold is recorded)

For recording this we debited the cost of goods sold as it increased the expenses and reduced the assets so merchandise inventory is credited

B. Account receivable Dr $254,300

        To Sales revenue $254,300

(Being the merchandise sold for account)

For recording this we debited the account receivable as it increased the assets and credited the sales revenue as it also increased the revenue

Cost of goods sold Dr $134,779

       To Merchandise inventory $134,779

(being the cost of goods sold is recorded)

For recording this we debited the cost of goods sold as it increased the expenses and reduced the assets so merchandise inventory is credited

C. Cash Dr $162,900

       To Sales revenue $162,900

(Being the merchandise is sold for cash)

For recording this we debited the cash as it increased the assets and credited the sales revenue as it also increased the revenue

Cost of goods sold Dr $86,337

       To Merchandise inventory $86,337

(being the cost of goods sold is recorded)

For recording this we debited the cost of goods sold as it increased the expenses and reduced the assets so merchandise inventory is credited

D. Cash Dr $72,000

       To Sales revenue $72,000

(Being the merchandise is sold for cash)

For recording this we debited the cash as it increased the assets and credited the sales revenue as it also increased the revenue

Cost of goods sold Dr $38,160

       To Merchandise inventory $38,160

(being the cost of goods sold is recorded)

For recording this we debited the cost of goods sold as it increased the expenses and reduced the assets so merchandise inventory is credited

E. Credit card expenses Dr $7,010

           To Cash $7,010

(Being the cash paid is recorded)

For recording this we debited the credit card expense as it increased the expenses and reduced the assets so cash is credited

Answer:

Double entry is given in the explanation.

Explanation:

Part A. The common stock is always recorded at par which is $3 per share here and the Capital Paid In is the remainder amount which is calculated as under:

Capital Paid In = Cash Received - Common Stock

Here,

Capital Received is $305,000

Capital Stock = 45,000 shares * $3 par value  = $135,000

By putting the values, we have:

Capital Paid In = $305,000 - $135,000 = $170,000

Double Entry would be:

Dr Cash  $305,000

Cr Common Stock  $135,000

Cr Capital Paid In    $170,000

Part B. The common stock of the stocks that are issued at no par value is always recorded at money received which means there is no capital paid-in.

Double Entry would be:

Dr Cash  $75,000

Cr Common Stock  $75,000

Part C. The inventory received is worth $44,000 which would be debited to inventory account. In exchange of inventory $44,000 and machinery worth $160,000 (Machinery will also be debited), 2500 shares having $25 par value (common stock will be credited at par and the excess of par would be capital paid-in) and $94,000 note payables were issued (Note payable would be credited at $94,000).  

Double Entry would be:

Dr Inventory  $44,000

Dr Machinery $160,000

Cr           Note Payable                           $94,000

Cr           Common Stock (2000 * $25) $50,000

Cr Capital Paid In  (Balancing Figure)   $60,000

Answer:

728,839.57883 per quarter.

Explanation:

1. Effective Annual Rate = 10%

Effective rate continuously compounded = eln(1+r) - 1

ln(1.1) = 0.09531018

Montly rate = 0.09531018/12 = 0.07942515

e0.07942515 -1 = 0.00797414

Hence, monthly continuous rate =

0.797414%

2. Effective Quarterly rate

= (1+(Rate per year/52))Number of weeks

=(1+Rate per quarter)4,

(1+(0.15/52))208=(1+r)4,

r = 16.1583394% per quarter

Now, using the PMT function in excel,

=PMT(16.1583394%,16,-4100000)

728,839.57883

per quarter

Therefore In order to earn 15% per year compounded weekly on its investment at the end of each quarter, the company will have to get $728,839.57883

Answer:

i. How much do you owe on the loan today?

ii. How much interest did the firm pay on the loan in the past year?

iii. Suppose starting next year (fourth year) the loan rate jumps to 7.2% APR. What is the remaining balance? What will be the monthly payment?

Explanation:

I prepared two amortization schedules using an excel spreadsheet. The principal on the loan was $500,000. The first one has a fixed 4.8% APR for the whole 30 years. In the second one, the APR changes to 7.2% at the beginning of year 4.

Answer: 1. During an economic recession and in a pessimistic environment, the yield spread between US government bonds and corporate bonds could be higher than during good economic times.

2. Reorganization

Explanation:

1. When there is a higher yield gap between the US Government bonds and Corporate bonds, this means that the Corporate bonds carry more risk. In a Pessimistic Environment, the ability of a company to pay it's Debt obligations is called into question as the economy is going through hard times and they must be as well. If this is the case which it usually is, higher risk will be attached to Corporate bonds which means that the yield spread/gap will be higher in such an environment than in an Optimistic environment.

2. Reorganization refers to the changing of the way a company is run from it's ownership to it's structure and modus operandi. It is usually done to ensure the business survives when it is going through hard times and the current status quo cannot stand. Hawaiian Telecom engaged in Reorganization by engaging in the actions described.

Answer:

Please see the Journal Entry below for Innovative Consulting Co.

Explanation:

Oct. 1

Debit: Rent Expense $2,500

Credit: Cash $2,500

Oct. 4

Debit: Advertising Expense $600

Credit: Cash $600

Oct. 5

Debit: Supplies $1,200

Credit: Cash $1,200

Oct. 6

Debit: Office Equipment $9,200

Credit: Accounts Payable $9,200

Oct. 12

Debit: Cash $15,900

Credit: Accounts Receivable $15,900

Oct. 20

Debit: Accounts Payable $3,410

Credit: Cash $3,410

Oct. 27

Debit: Miscellaneous Expense $550

Credit: Cash $550

Oct. 30

Debit: Utilities Expense $400

Credit: Cash $400

Oct. 31

Debit: Accounts Receivable $50,170

Credit: Fees Earned $50,170

Oct. 31

Debit: Utilities Expense $830

Credit: Cash $830

Oct. 31

Debit: Dividends $1,850

Credit: Cash $1,850

Answer:

In simple words, by treating the employees well in the organisation businesses can get a lot of unexpected profits besides the lower cost due to lower employee turnover.

Employees in such organisation will always be motivated to work hard and self align their interests with objectives and goals of the organisation. Also employee satisfaction leads to lesser conflict with the workplace which further leads to more efficiency.

Answer:

(A)The theory applied by the manger is refereed to as the Vroom's expectancy. it was made to inspire Laura to perform better in her place of  work, for this she was promoted duw to her performance and zeal to work.

(B) The motivational factors of Herzberg and Maslow's esteem and self actualization are very close.

Maslow's esteem and actualization focused on employee motivation towards work. while Herzberg motivational factor where more of recognition, achievement, prestige and status.

Explanation:

Solution

(A) The theory used by manager is called the Vroom’s expectancy m which was used to inspire Laura.

Laura put in a great amount of work towards  developing her sales relationship which showed in desired output.

For this performance, she was promoted to the level of Customer Manager at Head Office. (Expectancy)

This made her move into marketing field though she was initially  an assistant Brand Manager but later became the Brand Manager. (Instrumentality).

Her desire to move from Sales to marketing was possible in the end (Valence).

(B) The factors of Herzberg's motivation and Maslow's self-actualization and respect needs are considered very close.

The motivating factors initiated by Herzberg are job elements as responsibility, recognition, achievement, and growth. this was all centered on employee motivation and satisfaction

With regard to Maslow’s respect and self-actualization needs which focused on motivating employee into work. esteem needs centered on status, prestige,and recognition. Self-actualization is called an achievement that us supreme where a person or individual  creates an impact that is seen as positive or beneficial to the society.

Answer:

b. Cosku and the workers have higher bargaining power, because they are less replaceable due to unemployment. There are very few people who Jonathan can hire to replace the workers, and if there are no workers, Jonathan cannot continue to live large  Thus, the power dynamics of the situation favor the workers winning higher wages

Explanation:

Since in the given question it is mentioned that the employees will go on strike until they do not received higher wages so that they can support their families

And in case of low unemployment, the relative bargaining power of the employers and the employees is changed i.e high. Moreover they are very Less person through which they can hire in order to replace the workers and in the case when there is no workers so he is unable to continue its business operations due to which he cannot live large.

So to overcome this he have to agree to pay the higher wages to the employees other wise the workers could leave the organization

Answer:

b) Cosku and the workers have higher bargaining power..........dynamics of the situation favor the workers winning higher wages

Explanation:

Labour markets wages & employment are determined on the basis of :-  labour demand by firms & labour supply by workers ; and relative bargaining power of buyer firms & seller workers.

Firms more bargaining power leads to reducing pressure on wage rates with more employment. Workers more bargaining power leads to increasing pressure on wage rates with less employment.

At the time of Jonathan's shoe factory inception, more unemployment meant firms had more bargaining power & hence the wages were lower. However, no hike in wages with time make workers demand higher wage with strike warning. Meanwhile, less unemployed labour supply available implies that firms have no substitute labour to hire. So, union & workers have higher bargaining power & labour irreplaceability due to less unemployment - state that Jonathan has no other alternative than to accept labour favouring notion of higher wages.

Answer:

a.  0.7467 and 0.2534

b.  0.2504 and 0.7495

Explanation:

As per the data given in the question,

The capital structure is a combination of the both debt and equity where debt is the cheapest source while the equity is the expensive source and the risk and return is high in case of equity as compared with the debt

a)

Company's capital structure weight on the basis of Book Value Weight :

Debt = (face value of first issue + face value of second issue)÷ (face value of first issue + (face value of second issue + year × share value)

= ($90+$75) ÷ ($90+$75+7×$8)

= 0.7467

Equity = 1 - Debt

= 1 - 0.7467

= 0.2534

b)

Company's capital structure weight on the basis of Market Value Weight :

Debt = (face value of first issue × % sale +face value of second issue × sale %) ÷ (face value of first issue × % sale +face value of second issue × sale% + year × current share price)

= ($90× 98%+$75× 110%) ÷ ($90× 98%+$75× 110%+7×$73)

= 0.2504

Equity = 1 - debt

= 1 - 0.2504

= 0.7495

Answer:

The answer for question A is $ 70,200

The answer for question B is $ 15.20

Explanation:

A.

 Budgeted direct labor hours = 6,000  hours

Variable overhead rate = $2.00

Variable manufacturing overheads = 6000 x $2 = $ 12,000

Fixed manufacturing overhead = $ 79,200

Total Manufacturing overheads = $ 91,200

Depreciation = $ 21,000

Cash disbursement of manufacturing overhead for November = total manufacturing overheads - Depreciation

= $91,200 - $ 21,000 = $ 70,200

B.

From above, we have  Total Manufacturing overheads = $ 91,200

Budgeted direct labor hours = 6,000  hours

Predetermined overhead rate for the month of November = Total Manufacturing overheads ÷ Budgeted direct labor hours

= $91,200 ÷ 6000 = $ 15.20

Answer:

Theory X management style

Explanation:

Theory X is focused on the standard laborer's suppositions. This theory of management believes the average worker has no motivation, lacks accountability and is focused to specific ambitions. Overall, managers of theory X style assume their workers are less smart, stupider, and only operate for a reliable income.

In such a management style the managers keeps strong supervision over their subordinates, therefore, it will be suitable style as the company is already in steep condition and further problems might lead to total loss.

Answer:

production level 30,000 units

production costs at that level:

sales price $50 per unit, profit $5 per unit = $150,000

fixed manufacturing overhead constant between 25,000 - 30,000 units

scenario 1:

due to a recession, sales decrease to 25,000 units:

special order for 5,000 at $42 per unit

additional costs = $10,000 for special machine

                                   without special order     with special order

total units sold                  25,000                          30,000

total revenue                $1,250,000                  $1,460,000

- variable px costs        -$650,000                    -$780,000

- fixed ma. overhead    -$270,000                    -$270,000

gross profit                     $330,000                     $410,000

- variable selling exp.    -$100,000                     -$115,000

- fixed selling exp.         -$180,000                     -$180,000

- special machine                       $0                       -$10,000

net profit                          $50,000                      $105,000

profits will increase by $50,000 if the special order is accepted

scenario 2:

normal sales levels 30,000 units, Army wishes to purchase 5,000 units:

special order for 5,000 at production costs + $1.80

additional costs = $10,000 for special machine

                                   without special order     with special order

total units sold                  30,000                          30,000

total revenue                $1,500,000                  $1,434,000

- variable px costs        -$780,000                    -$780,000

- fixed ma. overhead    -$270,000                    -$270,000

gross profit                     $450,000                     $384,000

- variable selling exp.    -$120,000                     -$100,000

- fixed selling exp.         -$180,000                     -$180,000

net profit                          $150,000                     $104,000

profits will decrease by -$46,000 if the Army's special order is accepted

Answer:

Law of tort

Explanation:

A tort can be basically described as an act or omission, which gives rise to an injury or harm, that could results into a civil wrong that could warrant a liability.

A tort can exist in 3 forms;

1. Negligence

2. Intentional torts, and

3. Strict liability.

The scenario under study here is a clear case of negligence. Here, the bank opined that there is deliberate and deceitful representation of the financial statement. Luca, the accountant, acknowledged that he was negligent in the preparation of this financial statements. The rule that governs this borders on negligence, and thus laws of tort comes handy in addressing this.

There are different forms of negligence. Luca is said to be liable to Chase for negligence under the tort laws.

A person who suffers loss due to the negligence of another person can sue for damages to compensate for their harm. it often applies to both individuals and businesses.

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Answer:

$31 million

Explanation:

No of shares = 15.5 million

Market price per share on grant date = $8

Market value of common shares = 15.5 * 10⁶ * 8

= $124 million

No of years = 4

Cost per year = ($124 * 10⁶) / 4

= $31 million

Answer:

Was your question removed?

Explanation:

Answer:

C. a change in one of the determinants of supply

Explanation:

Some of the factors that can cause a shift in supply includes:

Change in the price of input

Government regulations

Changes in the number of suppliers

Technological advancement

Only changes in price leads to movement along the supply curve

I hope my answer helps you

Answer:

debit to Returned Inventory for $100

Explanation:

The Journal entry is following below:

1. Sales Returns & Allowance Dr, $200

      To Account Receivable $200

(Being sales return is recorded)

Here, we debited the sales return and allowances as it is return and we credited the accounts receivable as it reduces the assets.

2. Returned Inventory Dr, $100

      To Cost of Goods Sold $100

(Being returned Inventory is recorded)

Here, we debited the returned inventory as it is return while we credited the cost of goods sold as the expenses is reduced.

Working note

Returned inventory = Actual return × Cost ÷ Customer purchase

= $200 × $1,750 ÷ $3,500

= $200 × 0.5

= $100

Answer:

The amount Van can include on his return as qualified medical expenses before limitation is $2,700

Explanation:

The amount of medical expenses that Van can include on his return as qualified medical expenses before limitation are the following:

a. $1,500 for doctor bills for van's son who is claimed as a dependant by Van's former spouse.

b. $300 for Van's eyeglasses

c. $900 for Van's dental work

Therefore, amount Van can include on his return as qualified medical expenses before limitation=$1.500+$300+$900

amount Van can include on his return as qualified medical expenses before limitation=$2,700

Answer and Explanation:

The preparation of the cash flow statement is presented below:  

                                        Skysong Corporation

                                      Cash flow statement

                           For the year ended December 31, 2022

Cash flow from operating activities

Net operating income $336,000

Adjustment made

Add: Depreciation expenses $83,000

Less: Increase in account receivable -$9,700

Less: Increase in inventory -$13,400

Less: Decrease in account payable -$3,200

Add: Increase in income tax payable $4,900

Net cash provided by operating activities $397,600

Cash flow from investing activities  

Purchase of Building -$147,500

Sale of land $35,000

Net cash used by investing activities -$112,500

Cash flow from financing activities  

Purchase of treasury stock -$39,700

Issuance of the common stock $216,000

Dividend paid -$10,800

Net cash used by financing activities $165,500

Increase in cash $450,600

Add: Beginning cash balance $35,000

Ending cash balance $485,600

The items which shows in a positive sign represents the cash inflow and the items which depicts in a negative sign shows the cash outflow    

Answer:

Since the current stock's price should be $11.97, then the stock is overpriced, so you should not buy it.

Explanation:

if we use the dividend growth model to determine the intrinsic stock price:

Div₃ = $2.00

Div₄ = $2.12 (6% growth rate)

using the dividend growth model we can determine the terminal price of the stock in year 3

P₃ = $2.12 / (18% - 6%) = $17.67

terminal price in year 3 = $2 + $17.67 = $19.67

to determine the present value of the stock we must discount the future value by 18%:

present value = $19.67 / (1 + r)ⁿ = $19.67 / 1.18³ = $11.97

Since the current stock's price should be $11.97, then the stock is overpriced.