Answer:
The correct answer is letter "B": opportunity cost of the equity capital invested by the owners.
Explanation:
In Accounting, explicit costs are those incurred as a result of the operation of the companies. <em>Raw materials, direct labor, overhead </em>or <em>rent </em>are examples of explicit costs. Implicit costs represent the opportunity costs of the firm over forgone decisions or decisions not taken at all like avoiding hiring more employees.
The economic profit of a firm includes both explicit and implicit costs. <em>The accounting profit of a company includes only the explicit costs, thus, the opportunity costs of the equity capital of investors are not taken into consideration.</em>
Answer:
The answer is B. $5,270.94
Explanation:
C is the cash flow per period
i is the rate of interest
n is the frequency of payment
PV of an Annuity = C x [ (1 – (1+i)^-n) / i ]
PV of an Annuity =125 x [ (1 – (1+0.065/12)^-12*4) / 0.065/12] = $5,270.94
Answer:
0.65 per share
Explanation:
Calculate weighted average share
Date Weighted average share
Jan 1 200*1.05*2/12 35
Mar 1 (200-24)*1.05*4/12 61.6
July 1 184.80*3/12 46.2
Oct 1 188.80*3/12 47.2
Total 190
Earning per share = (150-27)/190 = 0.65 per share
Answer:
lagged effect
Explanation:
The lagged effect in advertising refers to a situation where continuous exposure to an advertisement will increase consumer awareness of the advertised product and eventually lead to the purchase of the product.
In Julie's case, it is the first time she sees a billboard advertising the South of the Border Restaurant and Motel, so the lagged effect is not present yet. She would need to see a lot more billboards before starting to consider eating or staying at that place.
