Answer:
30%
Explanation:
The computation of return on investment is shown below:-
Return on Sales = Credit sales × Return on sales
= $24,000 × 5%
= $1,200
Investment in Accounts Receivable
= $24,000 × 1 ÷ 6
= $4,000
Return on Investment = Return on Sales ÷ Investment in Accounts Receivable × 100
= $1,200 ÷ $4,000 × 100
= 30%
Therefore for computing the return on investment we simply divide the investment in account receivable by return on sales.
Answer:
a. $100, and her economic profits are $25
Explanation:
Accounting profit = Revenue - Explicit Cost
$150 - $50 = $100
Economic profit = Accounting profit - Opportunity cost
$100 - ($ 15 × 5)
$100 - $75 = $25
I hope my answer helps you
Answer:
In the late 1960s and early 1970s, a small group of Chilean students went to the University of Chicago to obtain graduate degrees in economics. By that time, the University of Chicago was led by Milton Friedman, an economist known for his defense of market liberalism and private property.
After Chilean Dictator Augusto Pinochet overthrew former president Salvador Allende (who killed himself), Pinochet called upon some of these Chicago-graduates to advise him on economic matteers. This lead to the implementation of liberal policies such as privatization of public services, pensions, and healthcare, the reduction of taxes, and the elimination of syndicates.
I think the answer is B, but I am not sure.
Answer:
The company's cost of equity capital is 0.056
Explanation:
cost of equity capital
= risk free rate + beta*(expected return on market - risk free rate)
= 0.01 + 0.92*(0.06 - 0.01)
= 0.056
Therefore, The company's cost of equity capital is 0.056