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Maru [420]
4 years ago
7

Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or foregone entrep

reneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.
Refer to the above information. The implicit costs of Harvey's firm in the first year were:
a. $50,000
b. $60,000
c. $100,000
d. $150,000
Business
1 answer:
kompoz [17]4 years ago
6 0

Answer:

b. $60,000

Explanation:

Implicit cost is the cost which is not shown as a cost in the statement of income.

As it includes basically the opportunity cost.

This will include:

Salary foregone = $45,000

Entrepreneurial skills income = $5,000

Interest on bonds foregone = $100,000 \times 10% = $10,000

Thus, total implicit cost = $45,000 + $5,000 + $10,000 = $60,000

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Answer: Securities Act of 1933

Explanation:

The Act of 1933 is the Act that can be used to coordinate a securities registration filing under the provisions of the Uniform Securities.

The Securities Act of 1933 consists of two main aims which are that the investors should get financial and necessary information with regards to the securities that are offered for public sale and also that fraud, deceit, and misrepresentations should be prohibited when selling securities.

7 0
3 years ago
What is a system for ordering items that have little or no value at the end of a sales​ period?
lara [203]

a. ​Single-period inventory model

In this model, inventory is ordered once at the beginning of the period, not replenished during the period, and anything left over at the end is scrapped.

4 0
3 years ago
You are considering purchasing a stock that currently sells for $48. The expected price of the stock in a year is $46, and durin
o-na [289]

Answer:

Holding Period return is 6.25%

Explanation:

The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.

According to given data

Initial Price of stock = $48

Expected Value in coming year = $46

Expected Dividend =  $5

Formula for Holding Period Return

HPR = [ Income + [ ( Expected value - Initial Value ) ] / initial value

HPR = [ Expected Dividend + [ ( Expected value - Initial Value ) ] / initial value

HPR = [ $5 +  ( $46 - $48 ) ] / $48

HPR = [ $5 - $2 ] / $48

HPR = $3 / $48

HPR = 0.0625 = 6.25%

5 0
3 years ago
Amazon stock prices gave a realized return of 6​%, negative 6​%, 9​%, and negative 9​% over four successive quarters. What is th
Anvisha [2.4K]

Answer:

-1.167%

Explanation:

The current value of the stock is given by applying all of the realized returns to the initial purchase price. Let 'A' be the initial price, the price at the end of the year is:

P = A*(1+0.06)*(1+0.09)*(1-0.06)*(1-0.09)\\P=0.9883A

At the end of the year, the stock had a price of 0.9883 times the initial price, the annual realizes return was:

r=(0.9883 - 1)*100\%\\r= -1.167\%

Annual realized return was  -1.167%.

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3 years ago
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If the New York Stock Exchange is a well-functioning market, Company ABC's share price accurately reflects all available information about the Market. As a result, all NYSE participants could predict that Company ABC would release the new product. As a result, the company's stock price remains unchanged.

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3 0
2 years ago
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