The evendale store is just one of many stores owned and operated by the company the apparel department is one of many departments at the evendale store the central warehouse serves all of the company's stores. what is the total amount of the costs listed above that are direct costs of the apparel department? what is the total amount of the costs listed above that are direct costs of the evendale store? what is the total amount of the apparel department's direct costs that are also variable costs with respect to total departmental sales?

The cost of equity is "10.00%".

Explanation:

The given values are:

After tax profits,

= $20 million

Number of shares,

= 1 million

Dividend cover ration,

= 4.0

Market capitalization,

= $50 million

Now,

The earning per share (EPS) will be:

=

On substituting the values, we get

=

= ($)

The dividend cover ratio =

On substituting the given values, we get

⇒                                  

⇒            

⇒                                         ($)

Market per share price will be:

=

=

= ($) per share

So,

The cost of equity capital will be:

=

On putting the values in the above formula, we get

=

=

= i.e., %