Buying is the highest risk investment because the outcome is unknown and you have to take a gamble.
First, calculate for the total operating cost of the park through the equation,
TC = TV + TF
where TC is the total cost,
TV is the total variable cost which is equal to the product of the variable cost per visitor and number of visitor, and
TF is the total fixed cost.
Substituting the known values,
TC = ($15)(1,750,000) + $60,000,000 = $86,250,000
Then, the total revenue is the product of the cost of ticket and the number of visitors.
TR = ($50/visitor)(1,750,000 visitors) = $87,500,000
Subtracting the two values will give us an answer of $1,250,000.
ANSWER: $1,250,000
Answer:
General agent
Explanation:
A general agent is a person that the principal authorises to perform transactions in relation to a part business on a certain place.
A general agent can perform all acts in relation to a business that has been assigned by the principal. For example in real estate when an agent performs property management functions for his client he is acting as a general agent.
On the other hand a special agent is one that is employed by a principal to perform a specific task or job and his scope of responsibility is limited to that job function.
Answer:
No
Explanation:
The trial balance shows the totals of all transactions that have been recorded. It has no way of knowing if there are additional transactions that have not been recorded.
Answer:
The expected excess return will be 11.4%
Explanation:
The S&P 500's excess return is the market return (rM). Using the CAPM model or the SML approach, we can calculate the required/expected rate of return on the stock we are investing in.
The expected rate of return is,
r = rRF + β * (rM - rRF)
Thus, return on the invested stock will be:
r = 0.03 + 1.2 * (0.1 - 0.03)
r = 0.114 or 11.4%
