Hi the correct answer would be C hope this helps you!
Good luck!
Answer:
B) It would increase the opportunity cost of becoming a broadcaster.
Explanation:
Opportunity costs are defined as the cost of choosing one alternative activity or investment over another.
The basketball player has two options, he can continue to play for an NBA team with a much better salary, or he can decide to become a broadcaster. If the player decides to quit basketball, then he will lose more money due to pay raise. That amount of money that he will lose if he decides to become a broadcaster is the opportunity cost of becoming a broadcaster. Since the pay increase raised the player's salary, the opportunity cost of becoming a broadcaster also increases.
Answer:
Return on Investment = 17%
Explanation:
Return on Investment = Net income from investment / Investment opportunity * 100
Where Net income from investment = (Sales * Contribution margin ratio) - Fixed expenses
Net income = ($1,530,000 * 30%) - $306,000
Net income = $459,000 - $306,000
Net income = $153,000
Return on Investment = $153,000 / $900,000 * 100
Return on Investment = 17%
Answer:
The company's expected market price per share After the repurchase would $23.68
Explanation:
In order to calculate the company's expected market price per share After the repurchase we would have to calculate first the Price-to-earnings ratio ( P/E ratio ) as follows:
Price-to-earnings ratio ( P/E ratio )= Market price per share / Earnings per share
Earnings per share = Earnings/ number of shares outstanding =$ 5,700,000 / $790,000 = $ 7.21
Therefore, Price -to-earnings ratio = $ 21 / $ 7.21 = 2.91
If 90,000 shares are repurchased, Therefore Earnings per share =$ 5,700,000 / $700,000 = $ 8.14
Therefore, the company's expected market price per share After the repurchase=$ 8.14 x 2.91 = $23.68
When the economy is operating at a point where output is
less than the natural level of output, the unemployment rate is greater than the
natural unemployment rate. the price level is less than the expected price
level. the price level will be lower
next period than it is this period.
