Answer: $8,600
Explanation:
Implicit cost is also known as the opportunity cost which means that it is the benefit of the next best alternative that was foregone when the current decision was made.
The implicit cost here is therefore:
The $8,000 that Charles could have been making as a lifeguard.
The interest per year he could have been earning on the $5,000 he used to buy mowing equipment.
The depreciation on the mowing equipment because depreciation is not an explicit cost but an implicit one.
= 8,000 + (2% * 5,000) + (10% * 5,000)
= 8,000 + 100 + 500
= $8,600
Answer: Debt being less risky than equity and interest payments being tax deductible.
Explanation: Debt securities are the securities having fixed interest rates and a fixed time period to maturity. The debt holders are not considered owners of the company but rather they are the the creditors.
Debt is considered the cheapest source of finance for a number of reasons the main of which is the interest payments on debt could be deducted as expense while computing taxable income .
Answer: c. legal but unethical
Explanation:
With John being in charge of the loan application when Albert came to apply, John had access to Albert's information.
John then used this information which he had LEGAL access to, to recommend a bank product to Albert.
This is legal but UNETHICAL because Albert did not know that any information he gave will be used for a reason different from his application for a loan.
True !! Can I be marked as brainliest ?!
In the cash flow statement financing activities refer to the flow of cash between a business and its owners and creditors.
