Answer:
$38,000
Explanation:
Opportunity cost is the benefit forgone for choosing another alternative by the individual.
In this case, the total opportunity cost incurred by Ed in running his own business is the cost that is needed to maintain the business and the opportunity to attain a salary of $25,000 for working for a newspaper. Calculation is as follows:
Business Expenses + Rent + Salary (not availed) = Opportunity cost
1,000 + 12,000 + 25,000 = $38,000
Hence, the opportunity cost for running his own business is $38,000.
Company increase money . it's taxes 40 + 40 = 80
Answer:
1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. True
2. Stock price will likely fall by the same percentage. False
3. Retention ratio will rise at the same rate. False
Explanation:
1. If a firm increases its dividend payout rate the: firm will have less cash available for new investment. This assertion is true because the company would be paying out a larger portion of earnings as dividends, hence the balance portion for new investment will be lower as a result.
2. Stock price will likely fall by the same percentage. This assertion is most unlikely because normally, if a particular stock is paying higher dividends investors will have high expectation and be willing to pay a higher price to buy a stock that pays high dividends
3. Retention ratio will rise at the same rate. This conclusion is also incorrect because pay out ratio and retention ratio have an inverse relationship. If more dividend is paid out, then less money is retained.
Answer:1 ) 6 units of output,( 2) Total revenue is $90, (3) Total Cost is $93
Explanation:
Q TFC TVC. TC
$ $ $
O 11 0 11
1 11 12 23
2 11 22 33
3 11 34 45
4. 11 48 59
5 11 64 75
6 11 82 93
To calculate the total cost
TFC + TVC = Total Cost
11 + 0 = 11
11 + 12 = 23
11 + 22 = 33
11 + 34 = 45
11 + 48 = 59
11 + 64 = 75
11 + 82 = 93
The total cost is $93
To calculate the Total revenue
Price × Quantity
Since price = $15, Quantity = 6 unit
15 × 6 = 90
Total revenue = $90
The firm will produce 6 units of output
Answer: Raise additional capital by selling fixed Interest rate long term bonds
Explanation:
A firm can finance it's operations through equity or debts, the art of a firm financing it's operations through debts like bonds etc it's refered to as financial leverage.
A firm cannot increase it's financial leverage by selling common stock, neither through buying stock from his cash and financial leverage does relate with asset turnover.
