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lawyer [7]
3 years ago
7

A firm decides to expand its operations and use more square footage in their main office. Currently, they rent out 3000 square f

eet of space at a rate of $3,431.00 per month. The new expansion will use this space. The firm has a cost of capital of 9.00% APR. If the tax rate is 35.00% facing the firm, what is the opportunity cost of using this space?
Business
1 answer:
Andrej [43]3 years ago
4 0

Answer: $297,353.33

Explanation:

In calculating the Opportunity Cost of using that space with the available data, the following formula can be used (notice that APR is a yearly figure and the rent is monthly),

Opportunity cost = Rent per month *12* (1-tax rate) / APR

= $3,431.00 * 12 * ( 1 - 0.35) / 0.09

= 297353.333333

= $297,353.33

$297,353.33 is the opportunity cost of using this space.

Note the method used above is the faster method but if you want to use the other method, first you change the rent to a monthly figure. Then you divide it by the cost of capital to get the present value. Then you multiply by the After tax rate of (1 - tax rate). It's basically the same as the above though.

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Read the scenario and answer the question.
Aleksandr-060686 [28]

Answer:

A). The price of gasoline increased in coastal cities since gasoline was harder to find.

Explanation:

As per the principles of demand and supply, a decrease in supply while demand remains constant will cause the price to increase.  In Georgia, the supply of gasoline was interrupted by the storm's effect. There was little gasoline coming in, leading to a shortage. After Electricity went off, gasoline demand must have gone high as people needed fuel for generators.

Gasoline has no close substitutes, especially when used as fuel for cars and generators. A shortage results in the scramble for the little available products. Sellers hike prices to maximize profits, and buyers are willing to pay more to get the scarce gasoline, thereby increasing its prices.

6 0
3 years ago
A job advertisement reads as follows: "Wanted, bright young men to sell athletic club memberships. Interested applicants should
ohaa [14]

Answer:

The group of options for this question are the following:

A. Yes, the ad makes clear the type of employee sought.

B. No, it is not acceptable as it discriminates against female applicants and does not give sufficient information about the organization or job requirements.

C. No, it is not acceptable as it discriminates against female applicants.

D. Yes, it is acceptable but would benefit from more information.

The correct answer is B. No, it is not acceptable as it discriminates against female applicants and does not give sufficient information about the organization or job requirements.

Explanation:

The basic concept when the company considers the publication of a job offer to fill a position, is to find the best possible candidate, the most qualified for what is sought. For this, the development of the offer is very important, in what terms it is being proposed, to which applicants it is directed, etc. If the job offer is created properly, it will not only get the applicant to the most capable position, but it will do so in the shortest possible time.

An effective offer must have a title that appeals, that contains added value, either because it brings a certain prestige to the position, excellent conditions for it or the image of an important professional projection within the company. For this, in order to attract the candidate's attention to the position, the text of the offer must be close and pleasant, with respectful but appealing language.

8 0
3 years ago
Cash flows from activities include both inflows and outflows of cash from the external funding of a business. True or false?.
user100 [1]

True.

Cash flows from activities include both inflows and outflows of cash from the external funding of a business.

<h3>Cash Flow from Financing Activities: What is it? </h3>
  • The net amount of financing a business generates during a specific time period is called cash flow from financing activities.
  • The issuing and repayment of equities, the payment of dividends, the issuance and repayment of debt, and capital lease obligations are all examples of financial activity.

<h3>What Are the Different Types of Cash Flows? </h3>
  • Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing.
  • The reverse of a cash outflow is a cash inflow, which is money entering a business.

<h3>What three different forms of cash flows are there?</h3>

To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow:

  • cash flow from operating operations
  • cash flow from investing activities
  • cash flow from financing activities.

The cash flow statement of a corporation includes all three.

  • Items like dividends and interest payments are excluded.
  • stock, debt, or alternative sources of funding.
  • Asset depreciation for capital goods

To learn more about financing activities visit:

brainly.com/question/16377227

#SPJ4

3 0
2 years ago
Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is
andrew11 [14]

Answer:

The correct answer is c) $9,000

Explanation:

If net credit sales are $300,000 and bad debt expense is estimated at 3% of net credit sales.

$300,000 x 3%= $9,000

or

$300,000 x 0.03= $9,000

The amount of the adjusting entry to record the estimated uncollectible accounts receivables is $9,000

7 0
3 years ago
The following information is for the Jeffries​ Corporation: Product​ A: Revenue ​$18.00 Variable Cost ​$14.00 Product​ B: Revenu
shusha [124]

Jeffries Corporation's Operating Income from the two products is <em>A. ​$35,000.</em>

The operating income is the difference between the revenue and operating costs (variable and fixed costs).

Data and Calculations:

                             Product A     Product B     Total

Revenue                 $18.00           $21.00

Variable cost            14.00              13.00

Contribution            $4.00             $8.00

Fixed costs                                                 $143,000

Total sales units                                            35,600

Sales mix                  3                        1               4

Sales units             26,700           8,900      35,600

Total contribution$106,800      $71,200  $178,000

Total fixed costs                                          143,000

Operating income                                      $35,000

Thus, the operating income is $35,000.

Read more: brainly.com/question/14815746

 

5 0
2 years ago
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