1,055 add the 200 and the 5.5% to get 211 and then add the 5 and the 211 alone to get 1,055
Answer:
-$20,000
Explanation:
Economic profit takes into account opportunity cost of an activity.
Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives. Opportunity cost is also known as implicit cost.
Because Bobby chose to work at the seafood resutrant, he forgoed the opportunity of working at the county. Thus, his opportunity cost is $30,000.
Also, if he wasn't making use of the restaurant, he could have rented it out. Thus, his opportunity cost of making use of the restaurant is $20,000.
Economic profit = Revenue - (Implicit cost + Explicit cost)
$50,000 - ($20,000 + $30,000 + $20,000) = -$20,000
I hope my answer helps you
Yes they do, it's all part of the process
Answer:
B. Be the target of a takeover bid.
Explanation:
It is gathered from analysis and in the cause of the risk management involved that it is likely to be the target of a takeover bid.
This investor has put on a Short Combination. The reason for a Short Combination would be the investor expecting the market price of the stock to remain neutral and expects to gain from the premiums received by selling both options. If the investor hears about a takeover bid, chances are that ABC's stock will fluctuate either above or below the 45 and 50 mark which would lead to a loss for the investor. Thus the reason that the investor would likely close both options positions upon hearing such rumors.