Liability insurance or legal liability
Answer:$4650
Explanation:
The cost that is recoverable is $30 per hour that was agreed as the hour to be spent in learning the soft ware. The sunk cost it's an irrecoverable cost that does influence decision making. When the agreed leaning cost of $30 per hr for 45hr of $1350 is deducted from the asking price of $6000 we have the $4650
Answer:
D) 1,200 shares held at a cost basis of $37.50 per share
Explanation:
Since the company paid a stock dividend, it increased the number of stocks held by the stockholders. The investor initially had 1,000 shares plus a 20% dividend = 1,000 x 1.2 = 1,200 shares. Since each stock should theoretically be worth less, his/her basis should decrease. The basis for each stock was $44(price) + $1(commission) = $45, after the dividend is paid it will be adjusted to $45 / 1.2 = $37.50 per stock
Two methods of capital investment analysis that incorporate the time value of money are -Net Present Value and Discounted Cash Flow
1- Net Present Value
Net Present Value reduces the expected future cash flows by a specific rate to arrive at their value in today's terms. After subtracting the initial investment cost from the present value of the expected cash flows, it can be determined whether the project is worth pursuing. If the NPV is a positive number, it means it's worth pursuing while a negative NPV means the future cash flows aren't generating enough return to be worth it and cover the initial investment.
2- Discounted Cash Flow
With DCF analysis, the discount rate is typically the rate of return that's considered risk-free and represents the alternative investment of the project. The present value is the value of the expected cash flows in today's dollars by discounting or subtracting the discount rate. If the result or present value of the cash flows is greater than the rate of return from the discount rate, the investment is worth pursuing.
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Answer:
The correct answer is a) stock price.
Explanation:
The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company's stock price. Debt financing supposes a low cost of capital, debt financing raises the risk to shareholders. In conclusion, the enterprise should find an equilibrium point to avoid a crisis.
