Question
C3. Use the assumptions described in the table when modeling items that are not computed as totals or subtotals. Variable Modeling assumptions Revenue Annual revenue
C3. Use the assumptions described in the table when modeling items that are not computed as totals or subtotals.
Variable | Modeling assumptions |
Revenue | Annual revenue growth rate in each forecast year is 1.962 percentage points greater than the annual revenue growth rate from the previous year |
SG&A and other indirect expenses | SG&A and other indirect expenses in the first forecast is $12,697 greater than SG&A and other indirect expenses from the previous year. SG&A and other indirect expenses in all subsequent forecast years is 2.83 percent greater than SG&A and other indirect expenses from the previous year |
Dividends | Annual dividend growth in each forecast year equals whichever is greater among 1) 5.12 percent and 2) the forecast net income growth rate for that particular year |
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