Answer:
23.07 per share
Explanation:
We will caltulate like the gordon model, but in this case growth= 0 and we are going to include the 10 millions stock repurchase in the dividend part of the equation.
Stock price= (future value of total dividends + repurchasing of stocks)/equity cost of capital)
(20 + 10)/0.13 = 230.77 MILLIONS
Then we divide by the number of shares:
230.77 MILLIONS/ 10 MILLIONS = 23.07 per share
The theory which could maybe explain this situation is "play hard ,work hard"
Answer:
During a period of inflation, Mast’s ending inventory and income tax payable will be higher using LIFO than FIFO.
Explanation:
In a period of inflation the closing inventory will be higher because of increase in price. In LIFO the oldest unit is sold first and the last purchased remains in the inventory. So Closing inventory is higher which decrease the Cost of goods sold and Increase in profit and ultimately Increase in Taxes as well. In FIFO the Newest unit is sold first and the oldest unit purchased remains in the inventory. So closing inventory is lower which increase the Cost of goods sold and decrease in profit and ultimately decrease in Taxes as well.
