Answer:
Dividends for the year $63,000
Explanation:
Phil Graves Cemetery
Jan. 1 Shares issued and outstanding 63,000
June 1 2-for-1 stock split x 2
June 1 Shares issued and outstanding 126,000
Oct. 15 Cash dividend declared (per share)x $ .50
Dividends for the year $63,000
Therefore the amount that Graves should report as dividends is $63,000
<u>Solution and Explanation:</u>
The implicit cost of capital
Implicit cost of capital is the opportunity cost of capital which is already incurred but not reported as a separate cost/expense, Implicit cost is the cost which results from using an existing asset instead of selling or renting it.
For example when a businessman uses his/her existing land which has implicit cost of say $1000 per month but bought it for say $100 many years ago, so $1000 is its implicit cost/current market rent per month which is equal to its oppo
Oscars opportunity cost for buying the business is 50,000