Cynthia Makes Weekly Cash Contributions of $30 to Her Church

question 58

True/False

Cynthia makes weekly cash contributions of $30 to her church. She pays by check. Since her annual contributions to the church are more than $250, she must obtain a written acknowledgment from the church to support her contribution deduction.

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Definitions:

Cost of Equity

The return a company theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital.

Annual Dividend

The total dividend payment a company makes to its shareholders in a single year.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and can be seen as the opportunity cost of investing capital elsewhere.