Answer: A. $70,000
No
Explanation:
Opportunity cost is the cost of forgone opportunity. It is what Jing would have earned ($70000) if she didn't start her business.
Even though Jing is making an accounting profit, her economic profit is negative,$-20,000.
Economic profit = Accounting profit - Opportunity cost
Answer: programming stage
Explanation: Programming stage in a recruitment process involves the organization implementing specific human resources activities, such as recruitment, training, and pay systems. However, in the scenario above, This treatment is taking place at the programming stage of the human resources planning process. She has not been recognized or rewarded for her work.
Answer:
20.1%
Explanation:
In capital asset prcing model (CAPM), cost of equity (or cost of retained earnings in this context) is calculated as below:
<em>Cost of equity = risk-free rate of return + beta x (market index return - risk-free rate of return)</em>
Please note that <em>(market index return - risk-free rate of return)</em> is equal to <em>market risk premium</em>
Putting all the number together, we have:
Cost of equity/retained earnings = 2.5% + 2.2 x 8% = 20.1%
<em>Note: The dividend growth rate, tax rate & stock standard deviation is not relevant in answering the question.</em>
Answer:
198,000
Explanation:
(960000 - 60,000) / 5 = 180k
Deprecation expense = 180,000 x 5 = 720,000
Deprecation expense from January to April = 4/12 x 180000
720 + 75h
