What does 3 dots inside a silver ring mean?

The opportunity cost of tesla's investment in a new battery factory in nevada is

Alex787 [66]

I believe the answer is: D. <span>what the company considered to be the best-foregone option to the factory.
The creation of new type of battery would cost Tesla a huge amount of capital that would definitely impact the amount of their profit for several operating years. The difference in profit between prior and after new battery would be the opportunity cost that must be taken by Tesla.</span>

5 0

3 years ago

ABC, a chain of candy stores, purchases its candy in bulk from its suppliers. For a recent shipment, the company paid $1,500 and

spin [16.1K]

Answer: Option (d) is correct.

Explanation:

Amount paid for candy = $1,500

Items received = 8,500 pieces of candy

Group 1 = 2,500 pieces

Selling price = $0.15 each

sale value = pieces sold × Selling price

= 2,500 × $0.15 each

= $375

Group 2 = 5,500 pieces

Selling price = $0.36 each

sale value = pieces sold × Selling price

= 5,500 × $0.36 each

= $1,980

Group 3 = 500 pieces

Selling price = $0.72 each

sale value = pieces sold × Selling price

= 500 × $0.72 each

= $360

Total sale value = $375 + $1,980 + $360

= $2,715

$Percentage\ of\ sale\ in\ Group\ 2=\frac{Sale\ value}{Total\ sale\ value}\times 100$

$Percentage\ of\ sale\ in\ Group\ 2=\frac{1,980}{2,715}\times 100$

= 72.92%

Proportion of cost for Group 2 = cost × Percentage of sale in Group 2

= $1,500 × 72.92%

= $1,093.8

$cost\ per\ unit= \frac{cost}{total\ units}$

$cost\ per\ unit= \frac{1,093.8}{5,500}$

= $0.1988

= $0.20(approx)

4 0

3 years ago

Like any effective salesperson, Frazer walks into a customer's office, shakes hands, looks the customer in the eye, and smiles.

lorasvet [3.4K]

Answer:

It would be C

4 0

4 years ago

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Gekata [30.6K]

Answer:

a. amount of the other good that must be given up.

Explanation:

The mix of two goods or services can be accomplished in the frontier of production possibilities when all available resources and technologies are fully efficient and used. This indicates a mix of the two resources to a maximum.

As we know that, the opportunity cost refers to the cost in which the best alternative is chosen among the available ones which can generate a better return so the one goods are considered while another cost is given up.

5 0

4 years ago

The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 7% per year. Carpetto'

Galina-37 [17]

Answer:

Dividend growth rate (g) = 7% per year

Common Stock value (P0) = $23 per share

Dividend just paid (or) Last dividend (D0) = $2

Current year dividend to pay (D1) = $2.14

(a) Using the DCF approach, what is its cost of common equity?

Cost of Common Equity (R) = [D1 / P0] +g

Cost of Common Equity (R) = [$2.14 / $23] + 0.07

Cost of Common Equity (R) = 0.1630 (or) 16.30%

Cost of Common Equity (R) = 16.30%

(b) If the firm’s beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm’s cost of common equity using the CAPM approach?

Beta = 1.6

Risk-free rate (Rf) = 9%

Return on the Market (RM) = 13%

Calculating Firm’s Cost of Common Equity using the CAPM approach:

According to CAPM approach:

Cost of common equity (RE) = [Rf + β (RM – Rf)]

Cost of common equity (RE) = [9% + 1.6 (13% - 9%)]

Cost of common equity (RE) = [9% + 1.6 (4%)]

Cost of common equity (RE) = [0.09 + 1.6 (0.04)]

Cost of common equity (RE) = 0.154 (or) 15.4%

Cost of common equity (RE) = 15.4%

(c) If the firm’s bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs?

rs= Bond rate + Risk premium

rs= 12% + 4%

rs= 16%

d. The two approaches bond-yield-plus-risk premium approach and CAPM both has lower cost of equity than the DCF method. The firm’s cost of equity estimated to be 15.9% which is the average of all the three methods.

Explanation:

5 0

3 years ago