<span>Implicit Cost Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer $452,000
The salary Darnell could earn if he worked as an accountant $48,000
The wages and utility bills that Darnell pays $301,000
The rental income Darnell could receive if he chose to rent out his showroom $38,000
B.
Profit ($)
Accounting Profit 842,000 - 452,000 - 301,000 = 89,000
Economic Profit 842,000 - 452,000 - 301,000 - 48,000 - 38,000 = 3,000
C. Economic Profit as an accountant = 48,000 + 38,000 - 89,000 = -$3,000. Thus, Darnell should stay in the Piano business to maximize the Economic Profit.</span>
Answer:
Explanation:
Using the dividend growth model = Do(1+g)/Ke-g
Do=1.62$
G=4%
Ke=12%
Do(1+g)/Ke-g = 2.0736(1+4%)/12%-4%
= 1.6848
/8%
= 53.916
Year Year Year Year Year
0 1 2 3 4
20% 20% 20% 20%
Dividend 1 1.2 1.44 1.728 2.0736
Ifninty dividend 55.91*
Total Cashflows 1 1.2 1.44 1.728 55.98
Pres.Val @12% 1 1.07142 1.14795 1.22995 35.583
Value of stock 40.030
Answer:
$4,908,000
Explanation:
The computation of accumulated depreciation expense for this purchase is shown below:-
Depreciation expense = ((Cost of machine - Salvage) ÷ Estimated useful life of machine)
= (($40,900,000 - $4,090,000) ÷ 15) × 2
= $36,810,000 ÷ 15 × 2
= $4,908,000
Therefore for computing the depreciation expense we simply applied the above formula.
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U. S. government consists of three separate degrees: the federal authorities, the state governments, and neighborhood governments President is both the head of the nation and head of the government of America and the Commander-in-chief of the militia. Under Article II of the charter, the President is liable for the execution and enforcement of the laws created by using Congress.
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