The normal rate of return on equity capital is also known as the opportunity cost of capital
Answer:
Option (a) is correct.
Explanation:
Given that,
Annual revenues = $137,800,
variable costs = $82,600
Fixed costs = $11,000
Annual depreciation = $23,500
Tax rate = 34 percent
Annual Income before Taxes:
= Annual revenues - Variable cost - Fixed Costs - Depreciation
= $137,800 - $82,600 - $11,000 - $23,500
= $20,700
Net income:
= Annual Income before Taxes × ( 1 - T)
= $20,700 × 0.66
= $13,662
Annual operating cash flow:
= Net income + Depreciation
= $13,662 + $ 23,500
= $37,162
Answer:
The percentage of Indiana residents with a college degree rises from 25% to 30%.
Explanation:
Human capital is one of the most important (according to some economists the most important) aspect for economic growth. If college graduates in Indiana go from 25% to 30%, it means that Indiana's human capital has improved.
With improved Human Capital, now Indiana can produce better steel and corn, or even produce other things, because its college graduates have acquire the necessary knowledge to do so. This will in turn lead to economic growth and a higher standard of living.
Answer:
$2,250,000
Explanation:
The computation of the estimated next year sales is shown below:
= Sales last year at full capacity + Sales last year at full capacity × next year percentage × capacity percentage
= $2,000,000 + $2,000,000 × 50% × 25%
= $2,000,000 + $250,000
= $2,250,000
We simply applied the above formula so the correct estimated sales for the next year could come
