Answer: The amount $62,000 ($50,000 + $12,000) would be Genevieve's Opportunity Cost
Explanation:
Opportunity cost is the next best alternative foregone.
Answer:
stock price = (Div 1 / r - g1) x {1 - [(1 + g1) / (1 + r)]ⁿ} + (Div 1 / r - g2) x [(1 + g1) / (1 + r)]ⁿ⁻¹
Explanation:
since the company will first grow at g1 for n years, and then at g2 forever, we need to first determine the present value of the dividends growing at g1 for n years:
present value of the dividends during n = (Div 1 / r - g1) x {1 - [(1 + g1) / (1 + r)]ⁿ}
e.g. div = $2, n = 5 years, g1 = 8%, r = 12%
(2 / 12% - 8%) x {1 - [(1 + 8%) / (1 + 12%)]⁵} = 50 x 0.166263 = $8.31
now we find the formula to calculate the present value for the growing perpetuity g2 at n - 1 years:
= (Div 1 / r - g2) x [(1 + g1) / (1 + r)]ⁿ⁻¹
following the same example but changing g1 for g2, and g2 = 5%
= (2 / 12% - 5%) x [(1 + 5%) / (1 + 12%)]⁵⁻¹ = 28.5714 x 0.772476 = $22.07
we now add both parts to finish our example = $8.31 + $22.07 = $30.38
Answer:
Option B It presents variable cost as a slope coefficient
Explanation:
The reason is that the total cost function is:
Y = a + bx
The total cost in this case is Y, a is fixed cost as an intercept, b is variable cost represented as an slope and coefficient and x is level of activity which is independent of Y.
So the right answer is option B.
<u>Explicit</u> costs are the monetary payments made for market-supplied inputs while <u>implicit</u> costs are non-monetary opportunity costs.
Market, a means by using which the alternate of goods and offerings takes location as a result of shoppers and dealers being in touch with one another, both without delay or through mediating dealers or establishments.
A market is an area in which consumers and sellers can meet to facilitate the alternate or transaction of goods and offerings. Markets can be physical like a retail outlet, or digital like an e-store. Different examples encompass illegal markets, auction markets, and financial markets.
The definition of a market is an area in which you go to buy matters or a call for a specific item. An example of a marketplace is a grocery save or a farmer's marketplace where stands are set up and fruits and vegetables are sold.
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