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Karolina [17]
3 years ago
5

Suppose your expenses for this term are as​ follows: tuition:​ $28,000, room and​ board: $9,000, books and other educational​ su

pplies: $2,500.​ Further, during the​ term, you can only work partminustime and earn​ $16,000 instead of your fullminustime salary of​ $42,000. What is the opportunity cost of
Business
1 answer:
dsp733 years ago
4 0

Answer:

$ 56,500

Explanation:

Given:

Tuition expenses = $ 28,000

Room and board expenses = $ 2,500

Earning from the part time = $ 16,000

Fulltime salary = $ 42,000

Now,

the opportunity cost is given as:

= Full time working salary + (sum of expenses) - Earnings

on substituting the values, we get

opportunity cost = $ 42,000 + ( $ 28,000 + $ 2,500 ) - $ 16,000

or

opportunity cost = $ 56,500

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What two possible reasons could cause the required return to differ from the coupon interest​ rate? ​(Select the best answer​ be
mixas84 [53]

Answer:

A. Cost of funds has changed

B. Firm's risk has changed

Explanation:

The required rate of return on bonds refers to an investor's expected rate of return which is based upon rate of return other investors earn in the market on similarly priced bonds. This is also referred to as yield to maturity i.e YTM.

Coupon rate of payment of bond is the interest payment on such bonds which is usually fixed at the time of issue of such bonds.

Required rate of return may differ on account of change in cost of funds to the issuer which is cost of debt denoted as K_{d} . Cost of debt is determined by tax rate and net proceeds from the issue of such bonds.

Required rate of return may also change on account of change in the firm's risk. If the firm assumes more risk, such risk would deter investors from investing in such bonds and in such scenario, the firm has to offer higher coupon rate than the rate prevailing in the market to attract the investors.

5 0
2 years ago
Which companies entry into the Chinese market resulted in their brand being translated as 'bite the wax tadpole
dlinn [17]
Coca Cola? I might be wrong but I'm pretty sure
3 0
3 years ago
Colorado Mountain Mining paid $ 896,900 for the right to extract mineral assets from a 500,000​-ton deposit. In addition to the
Zepler [3.9K]

Answer:

(a) The asset would be recorded in accordance to IAS 16 Property, plant & equipment.

Dr  Mining Asset   896,900

Cr       Bank                     896,900

(b) IAS 16 says that the costs incurred to make the asset ready for use must be capitalized as part of the asset. This means the license fee $1000 filing fee, License fee $2100 and $50,000 amount paid for geological survey must be capitalized. So the entry is as under:

Dr Mining asset (1k+2.1k+50k) $53,100

Cr                      Bank                       $53,100

(c) This assets must be depreciated on the basis of tons of minerals extracted which is 60 thousands tons in the first year.

Depreciation Expense = (60k tons / 500k tons)   * (Total capitalized cost)

=(60,000/500,000) * (896,900+53,100) = $108,000

The Double entry of Depreciation Expense would be as under:

Dr Depreciation Expense  $108,000

Cr                Accumulating Depreciation  $108,000

3 0
2 years ago
The tax agency fund of Hardin County collected $1,000,000 for a school district, $5,000,000 for the county General Fund, and $50
rewona [7]

Answer:

$1,500,000

Explanation:

County receives funding from numerous sources. County has no control to introduce new taxes or increasing current taxes, except for property tax.

Given:

County collected for a school district = $1,000,000

County for General Fund =  $5,000,000

For town located in the County = $500,000

Hardin County Agency Fund = County for school + County for a town

= $1,000,000 + $500,000

= $1,500,000

4 0
3 years ago
Interest rates can be measured more accurately and quickly than reserve aggregates; hence an interest rate is preferred to the r
7nadin3 [17]

Answer:

False

Explanation:

This is false.

In reporting reserves aggregate there are lags interest rate such as the federal interest rate are quite easy to measure and easily observable. Such short term interest rate are nominal values and they do not measure the real cost of borrowing well. It does not show accurately what happens to Gross domestic product. Real interest rate equals nominal interest rate as a ratio of reduced inflation gives a representation of true cost of borrowing.

We cannot say with certainty that interests rate is a better policy instrument based on the ground of measurability.

7 0
3 years ago
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