P7-15: common stock value: variable growth lawrence industries’ most recent annual dividend was $1.80 per share (d0=$1.80), and the firm’s required return is 11%. find the market value of lawrence’s shares when: a. dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in year 4 to infinity. b. dividends are expected to grow at 8% annually for 3 years, followed by a 0% constant annual growth rate in year 4 to infinity. c. dividends are expected to grow at 8% annually for 3 years, followed by a 10% constant annual growth rate in year 4 to infinity.

Example1 lcnrv: ted company uses the lower of cost or nrv method in valuing its inventory items. the inventory at december 31, 2017, consists of products a, b and c, each having 1,000 units. relevant unit data for these products appear below: item a item b item c cost $ 80 $80 $80 estimated selling price 180 100 90 estimated selling cost 30 30 30 required: using the lower of cost or net realizable value rule, determine the proper value of inventory for balance sheet reporting purposes at december 31, 2017. prepare any necessary journal entry. apply the lower of cost or nrv method: • on an individual inventory basis; • on a group basis; • on a total inventory basis. solution worksheet: inventory (on an individual basis): inventory value item nrv cost lc- item a item b item c total inventory (on a group basis): inventory value item nrv cost lc- group 1 (item a and b) group 2 (item c) total inventory (on an aggregate inventory basis): inventory value item nrv cost lc- total inv