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Nataly [62]
3 years ago
14

Ben cartwright runs the wild west wax museum in carson city, nevada. the museum has been in business for 40 years and is a major

tourist attraction. the total value of themuseum's capital stock is $3.5 million, which ben owns outright. this year, the museum earned a total of $1.4 million after out-of-pocket expenses. without taking the opportunitycost of capital into account, this means that ben is earning a 40 percent return on his capital. suppose that risk-free bonds are currently paying a rate of percent to those whobuy them.6what is meant by the "opportunity cost of capital"?
Business
1 answer:
lawyer [7]3 years ago
5 0

<u>Solution and Explanation:</u>

The implicit cost of capital

Implicit cost of capital is the opportunity cost of capital which is already incurred but not reported as a separate cost/expense, Implicit cost is the cost which results from using an existing asset instead of selling or renting it.

For example when a businessman uses his/her existing land which has implicit cost of say $1000 per month but bought it for say $100 many years ago, so $1000 is its implicit cost/current market rent per month which is equal to its oppo

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Behaviors reveal ethics true or false
Zinaida [17]

I think this is true. Your behaviors reveal a lot about you, including what you believe, where you stand on certain things, etc.

Hope this helps! :D

6 0
3 years ago
Which of the following is the amount of money the business has earned after paying income taxes?
Gwar [14]

Answer:

Net income is the amount of money the business has earned after paying taxes

4 0
3 years ago
As a current or future business owner, entrepreneurs need to be able to assess collateral in order to secure a possible
amm1812

Answer:

True

Explanation:

Collateral is an asset used as a guarantee or security for the payment of a loan. It assures the lender that a borrower will pay back the loan.

If an entrepreneur applies for a business loan, the bank will most likely demand collateral. The entrepreneur will need to offer an asset, either property or motor vehicle, that will act as a guarantee for the loan. Should the entrepreneur fail in repayment, the bank can sell the asset to recover their money.

Few, if any, will lend anyone money based on a business idea alone.  Many banks will demand a business proposal to be backed with some guarantee to secure funding.

3 0
3 years ago
Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure fro
QveST [7]

Answer and Explanation:

1. Margie Johnson would be ethically wrong if she grants the boss's favour to not report inventory shrinkage. Also financial statements would not show a true and fair view if she decides to follow what her boss is asking. She should report true inventory value in financial statements.

2. Yes Ryan is being professional since he is out to improve company's sales and income even though he may be putting pressure on employees to work overtime

7 0
3 years ago
2. In a recent large PowerBall lottery, the prize was reported to be worth $590 million, which could be taken in 25 equal annual
deff fn [24]

Answer:

5.5%

Explanation:

This is an Annuity Due question. In an annuity due, recurring payments occur at the beginning of the yearIt is asking for the RATE. Using a financial calculator(on BEG mode), input the following;

Duration; N = 25

Recurring payment; PMT = 23.6

Present value ; PV = -334

One-time future cashflow; FV = 0

Then compute the interest rate; CPT I/Y = 5.499%

Therefore, the lottery commission is using about 5.5% interest rate.

3 0
4 years ago
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