Use the Information Above to Answer the Following Question

question 118

Multiple Choice

Use the information above to answer the following question.If the company uses the LIFO method,what is the cost of its ending inventory?

• A)$24
• B)$42
• C)$58
• D)$76

---

Definitions:

Post-split Price

Post-split price is the share price of a stock after the company has completed a stock split, adjusting the price proportionately to the split ratio.

Dividend Payout Ratio

A financial ratio that shows the percentage of earnings a company pays to its shareholders in the form of dividends, providing insight into the proportion of earnings distributed versus retained.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity that it uses to finance its overall operations and growth.

Residual Dividend Theory

A policy whereby a company pays dividends to shareholders from leftover earnings after all operational costs and capital investment projects are covered.