This morning you purchased a stock that just paid an annual dividend of $3.40 per share. You require a return of 9.8 percent and the dividend will increase at an annual growth rate of 4.3 percent. If you sell this stock in three years, what will your capital gain be

$8,800

Explanation:

As per the data given in the question,

We can calculate the amount of Purchasing department expense to be allocated to Assembly by using following formula:

Purchasing department expense to be allocated to Assembly = Total cost for purchasing department × no. of purchasing order ÷ total no. of purchasing orders in all departments

= $44,000 × 4 ÷ 20

= $8,800

We simply applied the above formula to compute the amount of purchasing department expense.