Unitech Has the Following Inventory Information

question 42

Multiple Choice

Unitech has the following inventory information. A physical count of merchandise inventory on July 31 reveals that there are 75 units on hand. Using the average-cost method, the value of ending inventory is

• A) $1,450.
• B) $1,500.
• C) $1,525.
• D) $1,550.

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Definitions:

Dividend Growth Model

A valuation model used to determine the value of a stock by using predicted dividends and discounting them back to present value.

Growth Rate

The rate at which a company's earnings, revenue, or other important metric increases over a specified period.

Dividend Growth Model

A model that estimates the value of a dividend-paying stock, based on the assumption that its dividends will continue to grow at a constant rate in the foreseeable future.

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation for their risk.