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olya-2409 [2.1K]
2 years ago
6

Describe three different financial decisions and their opportunity costs.

Business
2 answers:
KatRina [158]2 years ago
8 0

Answer:

Going to college has an opportunity cost of not working or working less. Buying a car has an opportunity cost of not being able to save as much. Buying a house could have an opportunity cost of not being able to travel. Opportunity cost is the choice you give up when selecting something else.

Explanation:

NeX [460]2 years ago
5 0

Answer:(Answers may vary.)

At the beginning of the year, I received a bonus at work. I decided to invest the money. I had two options: invest the money in high-yielding bonds, or invest the money in US Treasuries. I decided to invest my money in High-yielding bonds. High-yielding bonds had a return of 10 percent, whereas the US Treasuries had a return of 5 percent. So, my opportunity cost was 5 percent. High-yielding bonds carry more risk, though, and I might have lost 2 percent instead of earning 10 percent. Treasuries have virtually no risk, but the expected return is a bit lower.

My cousin is a fashion designer. She currently works for a retail management firm and earns $59,400 per year. A famous company in the fashion industry offered her a job in Paris. They offered her $45,500 per year. She decided to take the job in Paris, because she will learn many new things and will be in the fashion hub of the world. The salary offered is lower than what she currently earns. However, she believes that the opportunity cost of not taking the job would involve losing future lucrative opportunities that are only available to those who work in famous fashion companies. The opportunity cost of taking the job in Paris is the increased salary she would have earned at her old job. Moreover, she has to find her own accommodations and make new friends in Paris. In the United States, she has her own apartment and many friends and relatives. Therefore, another opportunity cost of moving to Paris involves losing an apartment and moving away from many friends and relatives.

James is working for a well-known firm and earns a decent salary. He pays his rent and other expenses from his salary, and saves the remaining amount. However, he now wants to pursue a master’s degree. For this, he will have to quit his job to attend classes full-time for one year. So, he left his old job, where he had earned the highest amount available for someone with his education and experience. However, he believes that within a year of being hired in his new career, he will earn a pay raise of 5 percent. In five years, he would earn a promotion and another pay raise, this time of 12 percent. The opportunity cost is the loss of one year’s income for James. However, the opportunity cost of staying in his job includes the future pay raises plus the satisfaction of obtaining a job he loves.

Explanation: Plato answer

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In what circumstances is it most important to use multistage dividend discount models rather than constant-growth models?
patriot [66]

Answer:

when valuing companies with temporarily high growth rates.

Explanation:

Discounted dividend models are methods to assess a company's share price based on the dividends that company will distribute in the future. Also known by its name in English dividend discount model (DDM).

These models are based on the theory that the price of a share must be equal to the price of the dividends that the company will deliver, discounted at its net present value.

If the price of the share in the market is lower than the result obtained by the discounted dividend model, the share is undervalued and therefore it is advisable to buy. If, on the contrary, the market price is higher than the model, it is understood that the share price is too high.

Multistage dividend growth models

It is very difficult for a company to experience the same growth every year as the Gordon model assumes, so multistage models assume different growths for each period.

The most common is to use two or three stage growths, where at first the growths are higher but then tend to stabilize at a smaller constant growth. As for example in early stage companies.

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3 years ago
When workers are not motivated to achieve organizational goals, the fault is often with the workers themselves. true false?
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Bennett Co. has a potential new project that is expected to generate annual revenues of $255,800, with variable costs of $141,20
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2 years ago
if a bookseller buys a paperback book for 4$ and the book is labeled with a selling price of 6.99,how much is the dollar markup?
lbvjy [14]
Given:
Selling price = 6.99
Cost = 4

The dollar markup is computed by deducting the cost from the selling price.

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'If an internal audit reveals issues, it is time to do some interviews and document reviews. 2 the attorney many people should be involved in the interview process of an employee.

An employee is a person who is paid to work for an individual or company. A worker does not have to work full time to be considered an employee. You just need to be paid for your work by your employer (the person or company that pays your salary).

An employer is an individual, firm, or organization that employs people and pays them wages for their work. A person who works and gets paid is called an employee. Employers provide employment.

An example of an employee is a store clerk. Employees are required to perform specific tasks such as: B. An employee is considered an employee if they wear a name tag and greet customers with certain expressions.

Learn more about employee brainly.com/question/27953070

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