Answer:
$246,287.86
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate = 7/4 = 1.75%
N = number of years = 4 x 3 = 12
$200,000( 1.0175)^12 = $246,287.86
Costs incurred prior to the current project are Sunk Costs .
<h3>What are
Sunk Costs?</h3>
sunk cost are those cost that that is been incurred without any recovery.
It can be used in decision making, which is seen as bygone and are not taken into consideration for continuity, hence, they are incurred prior to the current project .
Learn more about Sunk Costs at:
brainly.com/question/14042751
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Answer:
c
Explanation:
depend on the scenario.. all costs that are directly related to that decision all relevant cost.
Answer:
D. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.
Explanation:
So, we evaluate each option.
a. We discount the dividends by the required rate of return. So incorrect.
b. The dividend yield is annual dividend per share divided by stick price per share. the 5% is the growth in dividend and not the actual dividend itself. So, incorrect.
c. The constant growth is appropriate for companies whose dividend patterns are stable. Startups have multiple stage growths and this option becomes incorrect as constant growth is not applicable.
d. A zero growth stock is one where dividend remains the same. So when there is no growth in dividend, the constant growth model becomes inapplicable. So, the statement is correct.
So, here we have our correct statement and all others are incorrect.
Answer: $225,000
Explanation:
Given that,
Net income = $325,000
Alicia’s salary = $100,000
Dividends = $250,000
Reasonable compensation = $200,000
Actual Reasonable compensation = Reasonable compensation - Alicia’s salary
= $200,000 - $100,000
= $100,000
Alicia’s qualified business income = Net income - Actual Reasonable compensation
= $325,000 - $100,000
= $225,000
