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Anestetic [448]
3 years ago
15

John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached $125,000, but John held onto

the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold today and the proceeds invested in another investment, they would likely earn 5% per annum. Which of the following terms and values is correct?
A. $125,000 is the opportunity cost of selling the shares todayB. $12,000 is a sunk costC. $250,000 is the opportunity costD. $2000 is the opportunity costE. None of the above
Business
2 answers:
Katen [24]3 years ago
7 0

Answer:

The answer is B

Explanation:

Nata [24]3 years ago
5 0

Answer:

B. $12,000 is a sunk cost

Explanation:

By considering the given information, the cost that is correct is a sunk cost for $12,000

The sunk cost is the cost already incurred and will not be retrieved in the future. Plus, it's also termed a past cost.  

It is a useless cost and it can be avoided also.  

It is that cost that is not considered at the time of decisions making.

So, option B is correct

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U.S. macroeconomic policy package of 1965-1968
5 0
3 years ago
How does the price range affect the elasticity of demand for a product?
Keith_Richards [23]

Answer:

How does the price range affect the elasticity of demand for a product?

Demand for all goods is elastic if the price is low enough.

Price range has little or no effect on elasticity of demand for a good.

Demand for a good can be inelastic at a low price, but elastic at a high price.

Demand for a good can be elastic at a low price but inelastic at a high price.

Explanation:

How does the price range affect the elasticity of demand for a product?

Demand for all goods is elastic if the price is low enough.

Price range has little or no effect on elasticity of demand for a good.

Demand for a good can be inelastic at a low price, but elastic at a high price.

Demand for a good can be elastic at a low price but inelastic at a high price.

7 0
3 years ago
Your immediate supervisor is a nice person. He helps you solve your problems and gives valuable advice. You admire your supervis
ryzh [129]

Answer:

(E)

Explanation:

Referent power is effective in any form of business activity. It is something which inspires the employees and to see their managers as a role model. In the above example, my supervisor has referent power over me because I consider him my role model. Some supervisors have certain interpersonal skills which help them to become a role model and a good manager.

3 0
3 years ago
Suppose the real risk-free rate is 2.50% and the future rate of inflation is expected to be constant at 4.10%. What rate of retu
Yakvenalex [24]

Answer: 6.6%

Explanation:

The Pure Expectations Theory believes that the future long term rate is a reflection of future short term rates.

In terms of a 5 Treasury Security then, the rate of return to be expected is the risk free rate adjusted for inflation.

The Treasury Security has no risk but for inflation risk hence this is all that should be catered for.

Rate of Return on 5 year Treasury Security = Real Risk Free Rate + Inflation Rate

= 2.5% + 4.1%

= 6.6%

5 0
3 years ago
Assume the perpetual inventory; system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless sta
Bingel [31]

Answer: Check attachment

Explanation:

In the attachment, note that:

On July 14:

Account payable was calculated as:

= $4400 - $300

= $4100

Merchandise Inventory = $4100 × 2%

= $4100 × 2/100

= $4100 × 0.02

= $82

Cash = $4100 - $82 = $4018.

Check attachment for further explanation.

7 0
3 years ago
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