Answer:
There are at least 2 opportunity costs associated with of letting your colleague have another month:
- if you invested in the oil-well venture, you could have earned $5,100 x 36% = $1,836 in one year
- if you invested in the new IT stock, you could have earned $5,100 x 48% = $2,448 in one year
You could invest in one of these options, or divide your money and invest in both options, e.g. invest $2,000 in the oil company and $3,000 in the IT company. Each different investment proportion results in a different opportunity cost.
Explanation:
Opportunity costs are the benefits lost or extra costs associated to carrying out an investment or activity instead of another alternative. Sometimes you might have several opportunity costs for one investment, e.g. invest in the IT company which is risky, invest in corporate bonds which is less risky or invest in US securities which is a safe investment.
Answer: suggests that the firm's previous choices were not the best ones.
Explanation: For a long-tenured top-level manager to make such proclamation, shows the inefficiencies of the firm which he is a part of. He obviously has been with the firm for a very long time and making that proclamation will also be a dent in his image as a manager.
Answer:
E. Reports how equity changes over a period of time.
Explanation:
Statement of owner's equity as the name suggests is the statement which describes the changes in owner's equity, as it is obvious that the change cannot occur at a point of time, it will occur over a period of time.
And therefore, the statement is prepared over a period generally for a fiscal year, or a financial year.
There is no statement prepared to show any change in owner's equity at a point.
Statement reporting cash flows is called cash flow statement.
Therefore, correct option is:
Statement E
Answer:
I think one is borrowers who don't pay back
Then I think that interest rates falling is also one
These are the only ones I can think of. hope they help
Answer:
The present value of security is $2300
Explanation:
The value or price of the perpetuity today is calculated by dividing the constant cash flow it provides per period by the interest rate or the rate of return (r). Thus the price of this perpetuity according to the formula will be,
Value of perpetuity = Cash flow / r
Value of perpetuity = 115 / 0.05
Value of perpetuity = $2300
