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RoseWind [281]
3 years ago
9

The fact that most people make some decisions based on intuition rather than calculation is: Select one: a. irrational, because

intuition is usually wrong. b. consistent with the cost-benefit model because calculating costs and benefits is irrational. c. consistent with the cost-benefit model because most people intuitively weigh costs and benefits. d. inconsistent with the cost-benefit model, but still rational.
Business
1 answer:
vodka [1.7K]3 years ago
4 0

Answer:

c. consistent with the cost-benefit model because most people intuitively weigh costs and benefits

Explanation:

People weight the cost and benefit before making desitions Some times without noticing they are doing it.

Also is important to notice intuition takes a role when there are shades in the information, the effect on the personnel and when not all information is available.

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Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which is equal to its total inves
adelina 88 [10]

Answer:

1.74%

Explanation:

                               17% Debt       50% Debt

Sales                      $500,000      $500,000

Less: Cost              $450,000      $450,000

Less: Interest         <u>$5,546</u>           <u>$17,400</u>

Profit before tax   $44,454        $32,600

Less: Tax at 35%  <u> $15,559</u>          <u>$11,410</u>

Net Income           <u> $28,895</u>        <u>$21,190</u>

Equity                     $361,050        $217,500

Return on Equity   8.00%             9.74%

Change in ROE = 9.74% - 8.00% = 1.74%

Workings

Interest (17% Debt) = 43,500*17%*7.5% = $5,546

Interest (50% Debt) = 43,500*50%*8% = $17,400

Tax (17% Debt) = $44,454 * 0.35 = 15,559

Tax (50% Debt) = $32,600 * 0.35 = 11,410

Equity (17% Debt) =435,000*83% = 361,050        

Equity (50% Debt) = 435,000*50% = $217,500

Return on Equity = $28,895/$361,050 = 8.00%

Return on Equity = $21,190/$217,500 = 9.74%

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2 years ago
Most Apple retail stores have a Genius Bar staffed with highly trained personnel who can help customers with their purchases of
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3 years ago
Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with chan
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6 0
3 years ago
Which of the following taxes is not deductible as an itemized deduction?a. Property tax on second residenceb. Sales tax in a sta
Rudiy27

Answer:

<u>b. Sales tax in a state with no income tax</u>

Explanation:

  • Under the laws of the united states, itemized deductions are eligible expenses that an individual taxpayer can claim on federal income if available.  
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3 0
3 years ago
Each year a cash grant is given to a deserving college student. The grant consists of the interest earned that year on a $440,00
Harlamova29_29 [7]

Answer:

The cash award will be equal;l to $444422.01

Explanation:

We have given amount invested P = $440000

Rate of interest r = 8.3%

Time t = 1 year

As the amount is compounded on daily basis

We know that 1 year = 365 days

So rate of interest r=\frac{1}{365}=0.00273 %

Time period n = 365

We know that final amount is equal to A=P(1+\frac{r}{100})^n

So A=440000(1+\frac{0.00273}{100})^{365}=444422.01$

So the cash award will be equal;l to $444422.01

6 0
3 years ago
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