Answer:
11.06%
Explanation:
Cost of equity = (D1/Current price) + Growth rate
Cost of equity = [(1.00*1.07)/26.35] + 0.07
Cost of equity = 0.04061 + 0.07
Cost of equity = 0.11061
Cost of equity = 11.06%
So, Ubees's cost of internal common equity is 11.06%.
7%........................
Answer:
A. $287,000
B. $192,050
Explanation:
a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.
b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050
Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:
=[$287,000 - ($181,050-$86,100)]
=$287,000-$94,950
=$192,050
Answer:
The total general and administrative expenses to be reported on the general and administrative expense budget per month is $8,800
Explanation:
The computation of total general and administrative expense is shown below:
= Administrative salaries + Other cash administrative salaries + depreciation + Monthly interest on an outstanding bank loan
= $5,000 + $2,400 + $1,350 + $50
= $8,800
All cost is need to be recognized while computing the general and administrative expense because it is related to the expenses. Hence, it is included in the computation part
Hence, the total general and administrative expenses to be reported on the general and administrative expense budget per month is $8,800
8% effective. at the end of 10 years, the total of the two funds is 52,000. at the end of 8 years, the amount in fund b is three times that in fund
