A source for conducting formal research would include what?

Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 i

stealth61 [152]

Answer and Explanation:

The computations are shown below

a. For Annual explicit cost

= Wages and salaries + material cost + new equipment cost + rental property + interest cost in capital

= $200,000 + $75,000 + $30,000 + $20,000 + $35,000

= $360,000

We considered all the cost which are incurred with respect to material, wages and salaries, equipment, etc

b. For Annual implicit cost

= Income received

= $90,000

= $90,000

It includes the opportunity cost which could be earned by the individual or company

c. For annual economic cost

= Explicit cost + Implicit cost

= $360,000 + $90,000

= $450,000

It is a mix of both explicit cost and the implicit cost

d. For accounting profit

As we know that

Accounting profit = Total revenues - explicit costs + depreciation.

= $360,000 - $360,000

= $0

e. For economic Profit it is

= Total Revenues – Explicit Costs – Implicit Costs

= $360,000 - $360,000 - $90,000

= -$90,000

7 0

4 years ago

An all-equity firm is considering the following projects:

FromTheMoon [43]

Answer:

Projects Y and Z

b. Projects W and Z

c. Projects W and Y

Explanation:

CAPM equation : Expected return = Risk free rate + Beta x (Expected market return - Risk free rate)

W = 4% + [0.85 x (11% - 4%)] = 9.95%

X = 4% + (0.92 x 7%) = 10.44%

Y = 4% + (1.09 x 7%) = 11.63%

Z = 4% + (1.35 x 7%) = 13.45%

Projects Y and Z have an expected return greater than 11%

b. Projects W and Z should be accepted because its expected return is higher than the IRR

c. Project W would be incorrectly rejected because the expected rate of return is less than the overall cost of capital (i.e. 9.95 is less than 11). But its expected rate of return is greater than the IRR

Y would be incorrectly accepted because its expected rate of return is greater than the overall cost of capital but its expected rate of return is less than the IRR

4 0

3 years ago

The funds provided by common stockholders that consist of common stock, paid-in capital and retained earnings are referred to as

Gnesinka [82]

Answer:

e. net worth.

Explanation:

According to my research on different financial assets held by firms, I can say that based on the information provided within the question these are all referred to as the firm's net cash. This is also known as the Common Stockholders' Equity which is formally defined as the company's share capital and retained earnings minus its treasury stock.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0

4 years ago

You found your dream house. It will cost you $300000 and you will put down $30000 as a down payment. For the rest you get a 30-y

Andrews [41]

Answer:

$1,282.80

Explanation:

The PMT formula is used for this question. The attachment is shown below:

The NPER shows the time period

Given that,

Present value = $300,000 - $30000 = $270,000

Future value = $0

Rate of interest = 4% ÷ 12 months = 0.33%

NPER = 30 years × 12 months = 360 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the answer is $1,282.80

5 0

4 years ago

An increase in income, holding prices constant, can be represented as A. a change in the slope of the budget line. B. a parall

Lisa [10]

Answer:

Option (B) is correct.

Explanation:

If there is an increase in the income of the consumer then as a result there is a parallel shift in the budget line. This increase in income will increase the real purchasing power of the consumers and hence, this would increase the quantity of two goods consumed in an equal proportion.

Other factors remains the same, an increase in the income level of the consumer will increase the consumption of both the goods because the prices of both the goods are constant.

5 0

4 years ago