Dabney electronics currently has no debt. its operating income is $20 million and its tax rate is 40%. it pays out all of its net income as dividends and has a zero growth rate. the current stock price is $40 per share, and it has 2.5 million shares of stock outstanding. if it moves to a capital structure that has 40% debt and 60% equity optional final (based on market values, its investment bankers believe its weighted average cost of capital would be 10%. what would its stock pric

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u. s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.