Microsoft Corp. will pay a dividend of $2.04 per share next year. Investors anticipate that the annual dividends will grow by 2% per year forever, and they require a 12% discount rate. Calculate the value of the stock. 2. The ABC Co. uses the gross profit method to estimate inventory and cost of goods sold for interim reporting purposes. Management estimates that the average gross profit rate is 25 percent of sales. The following data relate to the month of May: Inventory cost, July 1 $30,000 Purchases during the month at cost 80,400 Sales 100,800 Sales returns 3,600 Using the data above, what is the estimated ending inventory at July 31? A. $24,300 B. $25,200 C. $34,800 D. $37,500

Microsoft Corp. will pay a dividend of $2.04 per share next year. Investors anticipate that the annual dividends will grow by 2% per year forever, and they require a 12% discount rate. Calculate the value of the stock. 2. The ABC Co. uses the gross profit method to estimate inventory and cost of goods sold for interim reporting purposes. Management estimates that the average gross profit rate is 25 percent of sales. The following data relate to the month of May: Inventory cost, July 1 $30,000 Purchases during the month at cost 80,400 Sales 100,800 Sales returns 3,600 Using the data above, what is the estimated ending inventory at July 31? A. $24,300 B. $25,200 C. $34,800 D. $37,500