You must consider both consequences, the positive and the negative. Then you must think of a way that you will have a win-win situation or just do the compromising to be able to solve the problem and have a faster solving process.
Answer:
who can immediately take over the family business.
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
For a student who chooses to go to college, his opportunity cost is the opportunity of running the family business he forgoed when he decided to go to college.
I hope my answer helps you
Answer:
$16.93
Explanation:
Current stock price = dividend ( 1 + growth rate) / required return - growth rate
$1.4(1.04) / 0.126 - 0.04 = $16.93
The allowance for doubtful accounts credited, instead of accounts receivable when recording the adjusting entry for bad debts Because accounts receivable is made up of numerous client accounts, it cannot be credited unless it is known which particular customer will not pay.
The provision for questionable accounts is referred to as a "counter asset" since it reduces the value of an asset, in this example, the accounts receivable. The compensation, often known as a doubtful account, is management's projection of the amount of accounts receivable that customers will not pay. Let's assume, using the aforementioned example, that on June 30 a business reports an accounts receivable debit balance of $1,000,000. The business predicts that $50,000 will not be converted into cash and expects some consumers won't be able to pay the full amount.
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Answer:
I should invest in dollar deposits.
Explanation:
Current exchange rate is 1 euro = $1.08
Assuming I have y euro, the equivalent in dollar is $1.08y
Rate of return on dollar deposit = 2% = 0.02
Return on investment = $1.08y + (0.02 × $1.08y) = $1.08y + $0.0216y = $1.1016y
Rate of return on euro deposit = 1% = 0.01
Return on investment = y euro + (0.01 × y euro) = y euro + 0.01 y euro = 1.01y euro = 1.01y × $1.08 = $1.0908y
I should invest in dollar deposits because the return on investment is greater than euro deposits.
