Answer:
The correct answer is c. A firm considers overhead or depreciation costs to make short-run decisions
Explanation:
As Professor Adam Grant suggests, sunk costs have an important effect on our decisions, but there are three factors that influence us even more: anticipated regret ("will I regret it if I don't give the project another chance?"), project completion ("if I continue to invest, I will finish the project successfully") and the threat of ego ("if I do not continue betting on the project, I will seem a failure"
A good option is to prevent these three factors from occurring and constantly ask for feedback from those around us (collaborators, partners, friends). If we ignore the opinions that go against what we think, we will be putting the project at risk without realizing it. On the contrary, those who do not mind "swallowing pride" in the short term will make better decisions in the long term. On the other hand, separating the project from the person, the entrepreneurial venture, will help us not to take the recommendations of our environment personally and to react much more quickly and quickly.
Answer:
The cash balance per books at April 31, 2013 is $28,200.
Explanation:
It is required to compute the Balance per bank on 30, April:
Balance per bank on 30 April = Balance per bank statement + Deposits - Disbursement
= $37,200 + $46,700 - $49,700
= $83,900 - $49,700
= $34,200
The Cash balance per books on April 30, 2013 is computed as:
Cash balance per books on April 30, 2013 = Balance per bank on 30 April - Cleared the outstanding checks
= $34,200 - $6,000
= $28,200.
Answer:
The required rate of return is 7.20%
Explanation:
The price of the preferred stock share is the dividend which is divided through the required rate of return. It is the same as the model of the constant growth, with the dividend growth rate of the 0%.
This is the special case of the model of the dividend growth where the growth rate is 0 and the level of perpetuity.
So, using the equation, compute the price per share of the preferred stock as:
Rate = Dividend (D) / Price (P0)
where
Dividend is $5.80
Price (P0) is $80.50 per share
So, putting the values above:
Rate = $5.80 / $80.50
Rate = 7.20%
The answer is most likely D.
