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2 years ago

What was the opportunity cost for lebron james when he determined to directly enter the nba?

1 answer:

3 0

LeBron James is one of the best basketball players in the country, was selected by the Cleveland Cavaliers as the first pick in the 2003 NBA draft, signing a three-year contract worth almost $13 million, with an option for a fourth year at $5.8 million. Had he decided to attend college instead, James would have incurred an opportunity cost of at least $19 million in forgone income to earn a four-year college degree.

Opportunity cost is the value you would gain or lose if you choose a different path or solution. The opportunity cost in this scenario is deciding to play in the NBA since college was too expensive. LeBron James ultimately saved time and money by taking the detour because he received a contract worth close to $13 million; otherwise, he would have had to pay more and spend more time attending a four-year college.

LeBron's decision to join the NBA right after high school graduation has an opportunity cost because he might have attended a four-year university or college instead. He was chosen by the Cleveland Cavaliers as the first overall choice in the 2003 NBA Draft

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dion made $67,785 Last year . express this number as a single digit times of a power of ten rounded to the nearest ten thousand

slega [8]

Answer:

7 * $10^{4}$

Explanation:

First, round 67,785 to the nearest ten thousand;

The 6 is in the ten thousands place, since it is greater than 5, it will be rounded up to 7. The number therefore becomes;

=70,000

Next, estimate the 70,000 to a single digit times a power of ten.

Maintain the 7 digit, then find a number that 10 is raised to, to get 10,000;

10^1 =10

10^2 = 100

10^3 = 1000

Therefore, 7 times 10 ^4 will give you 70,000;

70,000

= 7 * $10^{4}$

7 0

3 years ago

Suppose that the annual interest rate is 2.0 percent in the United States and 4 percent in Germany, and that the spot exchange r

Anuta_ua [19.1K]

Answer:

$7,000

Explanation:

Using the covered interest rate parity formula

No Arbitrage Forward rate = Spot Rate * (1 + RD)/ (1 + RF)

= 1.6 * (1 + 2%)/ (1 + 4%) = 1.6 * 1.02 / 1.04 = $1.57 approximately

However, the actual forward rate = $1.58/€

Hence, there is an arbitrage opportunity.

Suppose an arbitrager borrows 1,000,000 in the United States at 2%.

Thus, after one year, he has to pay back 1,000,000 * (1 + 2%) = $1,020,000

He converts 1,000,000 into Euros at the spot exchage rate of $1.60/€.

Thus he gets 1,000,000/1.6 = €625,000

The arbitrager now invests this money in Germany at 4%.

At the same time, he enters into a forward contract to convert the money that he will get at the end of 1 year into US Dollars at a forward rate of $1.58/€

After 1 year, he gets 625,000 * (1 + 4%) = €650,000

He converts this money into USD at the exchange rate of $1.58/€ (at which he entered the forward contract)

Thus he gets 650,000 * 1.58 = $1,027,000

Amount he has to pay back = $1,000,000 * (1 + 2%) = $1,020,000

Net cash flow for the year through this arbitrage = $1,027,000 - $1,020,000 = $7,000

3 0

3 years ago

Wilson has a 40 percent interest in the assets and income of the CC&W Partnership, and the basis in his partnership interest

laila [671]

Answer:

a. $24,000

b. $9,000

Explanation:

a. The amount of income or loss from the partnership is limited to the share of the loss rather than its partnership interest

In the given case, the partnership interest is $45,000 and the share of his loss is $24,000

So, $24,000 is reported in his individual income tax return

b. The computation of the Wilson's basis in his partnership interest is shown below:

= Basis in his partnership interest - share of the loss - cash distribution received from the partnership

= $45,000 - $24,000 - $12,000

= $9,000

3 0

4 years ago

Situation 1 Bridgeport Cosmetics acquired 10% of the 184,000 shares of common stock of Martinez Fashion at a total cost of $13 p

Advocard [28]

Answer:

Please see find the answer in the explanation!

Explanation:

Situation 1:

First entry:

Bridgeport acquired 10% of shares of Martinez Fashion, the double entry would reduce the cash of Bridgeport and increase the asset, see as follows:

Shares Dr $239200 (18400× $13)

Cash Cr $239200

On June 30, Martinez declared and paid $69400 cash to all stockholders, Bridgeport will be entitled to 10% of the declared and paid dividend, therefore, dividend income will have to be recorded as follows:

Cash/bank Dr $6940

Dividend Income Cr $6940

Situation 2:

Indigo Inc obtained significant influence over Seles corporation (making her an Associate). In a group situation, an associate is equity accounted and is recorded as an investment in the statement of financial position and is also entitled to the profits with the proportion of their ownership. First entry would be to record the associate as an investment, see as follows:

Investment in Associate Dr $84780

Bank/Cash Cr $84780

On june 15 Seles declared and paid cash dividend, Indigo Inc will be entitled to 30% of the dividend, see as follows:

Dividend income= $39100× 30%

Dividend income= $11730

Entry:

Cash/Bank Dr $11730

Dividend income Cr $11730

Unlike Bridgeport Corporation, Indigo Inc will be entitled to 30% of the reported net income as well. The entry is as follows;

Cash/Bank Dr $ 25500 ($85000× 30%)

Income Cr $ 25500

7 0

4 years ago

Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occur

abruzzese [7]

Answer:

Kiona Co.

Journal Entries:

May 1:

Debit Petty Cash Fund $300

Credit Cash Account $300

To record the establishment of the petty cash fund.

May 15:

Debit Janitorial Services $93.60

Debit Miscellaneous Expenses $76.41

Debit Office Supplies $52.20

Debit Advertisement $68.58

Credit Petty Cash Fund $290.79

May 15:

Debit Petty Cash Fund $290.79

Credit Cash Account $290.79

To record the replenishment of the fund.

Debit Cash Account $13.80

Credit Surplus Cash $13.80

To record the excess cash counted.

May 16:

Debit Petty Cash Fund $200

Credit Cash Account $200

To record the increase of the fund to $500.

May 31:

Debit Office Stationery $53.73

Debit Transport $42.78

Debit Delivery Expense $44.17

Credit Petty Cash Fund $140.68

May 31:

Debit Petty Cash Fund $140.68

Credit Cash Account $140.68

To replenish the petty cash fund.

Debit Cash Account $50

Credit Petty Cash Fund $50

To record the reduction of the petty cash fund by $50.

Explanation:

A Petty Cash Fund is a system for meeting small-ticket expenses, by the use of the float system. This implies that the petty cashier is only reimbursed for actual expenditure in order to restore the float to the established amount.

4 0

4 years ago