Answer:
The correct answer is: inputs such as wages and salaries to its employees, whereas implicit costs are non-expenditure costs that occur through the use of self owned resources such as foregone income.
Explanation:
The implicit costs.
Also known as opportunity costs have to do with alternative earning options, or money that we no longer receive when performing certain commercial actions.
A company incurs implicit costs when it waives an alternative action but does not make a payment. Implicit costs of a company are:
- The use of the company's own capital (money or assets).
- The use of money, assets and financial resources of the owner.
Explicit costs. They are what we usually see and are easy to identify. Even if they can present some complication for their determination, it is possible to identify them thanks to the business operation itself.
Explicit costs are paid with money. In a food company the costs recorded by the company accountant are the explicit costs, for which the company disburses cash, such as wages and salaries, truck maintenance, tolls, service payments, and so on.
Answer:
$4,800,000
Explanation:
Widget corporation purchased all of its fixed assets three years ago for $6 million
These assets can be sold today for $3 million
The company receives $1.8 million in cash after liquidation of current assets
Therefore the market value of the company's total assets today can be calculated as follows
Market value = $3,000,000 + $1,800,000
= $4,800,000
Hnence the company's market value for today is $4,800,000
Where is the statements or answer choices?
Answer:
Sustainable Growth Rate: 2.5%
Explanation:
Sustainable growth rate is calculated by multiplying return on equity with retention ratio.
Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.
Growth rate = Retention ratio * return on equity
Retention ratio = 50%
Return on equity = Net profit available for distribution / Opening equity
Return on Equity = (25,000 * 10%) / 50,000
Return on Equity = 5%
Growth Rate = 5% * 50%
Growth Rate = 2.5%
