Sets up a LAN for the office APEX VERIFIED
Answer:
10.4%
Explanation:
The formula to calculate the cost of equity is:
Cost of equity= (DPS/MPS)+r
DPS= Dividend per share
MPS= Market price per share
r= Growth rate of Dividends
Cost of equity= (2.77/40.12)+0.0350
Cost of equity=0.069+0.0350
Cost of equity=0.104→ 10.4%
The company's cost of equity if the current stock price is $40.12 per share is 10.4%.
What are the options to choose from?
Answer:
Under last in, first out (LIFO) inventory method, the units purchased last are used to determine the cost of goods sold. This doesn't mean that exactly the last units purchased will be sold first, it is just used as an accounting tool.
In this case, the last unit purchased costed $20, and the immediately previous one costed $15. Under LIFO, these 2 units would have been sold (COGS = $35), and the ending inventory = $10 (the price of the "oldest" unit).
