1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Orlov [11]
3 years ago
13

Elinore is asked to invest $ 4 comma 900 in a​ friend's business with the promise that the friend will repay $ 5 comma 390 in on

e​ year's time. Elinore finds her best alternative to this​ investment, with similar​ risk, is one that will pay her $ 5 comma 341 in one​ year's time. U.S. securities of similar term offer a rate of return of 7​%. What is the opportunity cost of capital in this​ case?
Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer:

0.09 or 9%

Explanation:

This question has some irregularities. The correct question should be :

Elinore is asked to invest $4,900 in a​ friend's business with the promise that the friend will repay $5,390 in one​ year's time. Elinore finds her best alternative to this​ investment, with similar​ risk, is one that will pay her $ 5,341 in one​ year's time. U.S. securities of similar term offer a rate of return of 7​%. What is the opportunity cost of capital in this​ case?

Solution

Given from the question

Investment (I) = $4,900

Return on investment (ROI) in one year = $5,341

Rate or opportunity cost of capital r is given by

ROI = I × (1 + r)

input the given data

$5,341 = $4,900 (1 + r)

$5,341 = $4,900 + $4,900r

$5,341 - $4,900 = $4,900r

r = ($5,341 - $4,900) / $4,900

r = 0.09

Or 9% in percentage

You might be interested in
At its date of incorporation, Sauder, Inc. issued 100,000 shares of its $10 par common stock at $11 per share. During the curren
alexandr402 [8]

Answer:

Sauder Inc.

The answer is d.

The effect of the reissuance of the stock on:

1)Retained Earnings - No effect

2) Additional Paid-in Capital: No effect

Using the cost method or the par value method, there is no effect on Retained Earnings by the reissuance of stock.

Using the cost method, there is no effect on the Additional Paid-in Capital.  Every treasury stock transaction is recorded in the Treasury Stock account without reference to the Additional Paid-in Capital.

Using the par value method, there is an effect on the Additional Paid-in Capital for reissuance of stock at more than the par value.

Workings:

The reissuance would be recorded as follows, using the costing method:

Debit Cash with $240,000

Credit Treasury Stock with $240,000

To record the reissuance of 20,000 shares at $12 per share.

The reissuance would be recorded as follows, using the par value method:

Debit Cash with $240,000

Credit Treasury Stock with $200,000

Credit Additional Paid-in Capital with $40,000

To record the reissuance of 20,000 shares at $12 per share.

Explanation:

Treasury Stock account is a contra account to the Common Stock account.  There are two methods for recording treasury stock transactions: the costing method and the par value method.

Under the costing method, every treasury stock transaction is recorded in the Treasury Stock account.  Under the par value method, the above or below par value elements of treasury stock transactions are recorded in the Additional Paid-in Capital account.

7 0
3 years ago
In the economy of​ Cycladia, the total unemployment rate is equal to 11.0 ​percent, the structural unemployment rate is 2.42.4 ​
damaskus [11]

Answer:

The cyclical unemployment rate is 4.2%

Explanation:

There is a natural unemployment rate which contains every unemployment rate which is cyclical unemployment plus structural unemployment plus frictional unemployment, so then in order to get cyclical unemployment we will use the below formula:

natural unemployment = Frictional unemployment + Cyclical unemployment +structural unemployment

therefore we are given the natural unemployment rate of 11%

Frictional Unemployment Rate of 4.4%

Structural unemployment rate of 2.4%

then we substitute on the above mentioned formula and solve for cyclical unemployment

11% =4.4% + Cyclical Unemployment Rate+ 2.4% then we transpose and solve for cyclical unemployment rate

11% - 4.4% -2.4% = Cyclical Unemployment Rate

4.2 % = Cyclical unemployment rate

this unemployment rate goes with the business cycle of any business in which if there is a recession in an economy it is accounted for even if there is economic growth it is accounted for.

4 0
3 years ago
Which of these statements is true?
AnnZ [28]
The correct statement is Inflation is problematic if unexpected

Money loses purchasing power during inflation and there's too much of it.
8 0
3 years ago
Discuss how either good or poor quality affects you personally as a customer. Give specific examples and describe an experience
lys-0071 [83]

Answer:

Quality is the perhaps the most desired thing in a good or service, however, sometimes, as customers, we have to compromise on quality for a cheaper price.

Personally, I look for quality when I buy a laptop. I have had four laptos in my life. Two of those laptops were HP, and the two other were Lenovo.

I had a good experience with my first HP laptop, so I bought another one years later. That second HP had many technical issues only a few months after the purchase, and a year later I ended up buyina new Lenovo laptop.

That first Lenovo lasted for over 4 years until I replaced it for a new one.

In this case, the lack of quality I have personally experienced with HP has made me ditch the brand altogether.

4 0
3 years ago
IM.72 The Candy Shack has a monthly demand of 150 bags of Watermelon Slices. They pay $10.97 for each box of candy which contain
alisha [4.7K]

Answer:

a). Total annual demand=13 boxes

b). Material cost per bag=$1.60

Explanation:

a). The following expressions can be derived;

Total number of bags=number of bags per box×number of boxes

where;

Total number of bags=150 bags

Number of bags per box=12 bags

Number of boxes=n

Replacing;

150=12×n

12 n=150

n=150/12=12.5

Number of boxes =12.5 rounded to the nearest whole number=13

Total annual demand=13 boxes

b). Material cost per bag

Total material costs=(Cost per box×number of boxes demanded)+Ordering cost

Total material costs=(10.97×13)+75=$217.61

Additional cost=(10/100)×217.61=21.761

Total material costs=(217.61+21.761)=239.371

Material cost per bag=Total material cost/number of bags

where;

Total material cost=$239.371

Total number of bags=150 bags

replacing;

Material cost per bag=239.371/150

Material cost per bag=1.596 to nearest two decimal places=1.60

Material cost per bag=$1.60

5 0
3 years ago
Other questions:
  • Calculate the GDP of Dinoland using the expenditures approach given the following data: personal consumption expenditures = $10
    13·1 answer
  • Which of the following are included in the employer's payroll taxes?
    15·1 answer
  • A characteristic of generally accepted accounting principles includes:
    7·1 answer
  • Duke is a particularly highly skilled negotiator. the law firm that hires duke is able to collect twice as much revenue per hour
    8·1 answer
  • Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $258 two years a
    6·1 answer
  • Suppose the economy is at a point below its physical production possibilities frontier but above its institutional production po
    12·1 answer
  • 1. ¿que tiene que ver el gobierno populista con el universal basic income? 2. ¿es el UBI bueno para la economía?
    12·1 answer
  • ___ are costs that don't show up as part of the market price for a product.
    11·2 answers
  • The problem of bankruptcy is associated with misuse of credit in the ______________ component of financial planning.
    10·1 answer
  • At 90 days past due what happens to all cardholder accounts associated with a managing account?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!