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3 years ago

8

A person has a choice between an apple or an orange. The person chooses the apple. What is the opportunity cost of choosing the

apple?

1 answer:

Inessa [10]3 years ago

8 0

The opportunity cost would then be not having the orange.

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Discuss three consequences of<br> unemployment on the individuals

lora16 [44]

Answer:

it compells an individual to suffer form various problems like financial hardship and poverty, debt, homelessness and housing stress, family tensions ,etc.

Explanation:

hope it may help you

6 0

3 years ago

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Consider the following information for Evenflow Power Co., Debt: 5,000 6.5 percent coupon bonds outstanding, $1,000 par value, 1

melamori03 [73]

Answer:

<em>WACC 10.07765%</em>

Explanation:

We solve for the cost of debt by solving for the discount rate which makes the future coupon payment and maturity of the bond equal to 1,020

This is solved using excel or a financial calculator

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 32.50

time 34

<em>rate 0.03153274</em>

$32.5 \times \frac{1-(1+0.03153274)^{-34} }{0.0315327401919093} = PV\\$

PV $672.0015

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 34.00

<em> rate 0.03153274</em>

$\frac{1000}{(1 + 0.03153274)^{34} } = PV$

PV 348.00

PV c $672.0015

PV m $347.9985

Total $1,020.0000

<u>annual cost of debt:</u>

0.031532 x 2 = 0.063064 = 6.31%

<u>debt outstanding:</u>

5,000 bonds x $ 1,000 x 102/100 = 5,100,000

<u>equity</u>:

105,000 shares x $59 each = 6,195,000

For the equity we solve using CAMP

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.05

market rate = 0.09

premium market = (market rate - risk free) 0.085

beta(non diversifiable risk) = 1.17

$Ke= 0.05 + 1.17 (0.085)$

<u>Ke 0.14945</u>

Now we solve for the WACC

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

D 5,100,000

E 6,195,000

V 11,295,000

Equity weight 0.5485

Debt Weight 0.4515

Ke 0.14945

Kd 0.0631

t 0.34

$WACC = 0.14945(0.5485) + 0.0631(1-0.34)(0.4515)$

<em>WACC 10.07765%</em>

7 0

3 years ago

An opportunity cost is ________. A. the benefit gained by choosing a certain course of action B. costs that have been incurred

Oliga [24]

Answer: Option (D)

Explanation:

Opportunity costs are known to present the benefits that an individual misses while they opt for an alternative over the another one. When an individual chooses an option from the alternatives, then the opportunity cost is referred to as the cost that has incurred by not appreciating the benefit which are confederated with the known alternative choice.

8 0

3 years ago

Shelley’s Salsa produces and sells organic salsa. Last year it sold 3 million tubs of salsa at a price of $3 per tub. For last y

Murrr4er [49]

Answer: Option B

Explanation:

A. Explicit cost are the cost paid to others in return of their service. Hence Option A is incorrect.

B. Revenue is the total amount of earnings a company have before deducting for expenses. Hence Option B is correct.

C. Accounting profit means (Revenue - explicit cost) . Hence Option C is incorrect.

D. Economic profit means (Revenue - explicit cost - implicit cost) . Hence Option D is incorrect.

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4 years ago

Marys mom has 6 kids march april may june july what is her last kid name

denpristay [2]

Her last kid s name is August

8 0

3 years ago

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