The answer to the question above is "$500 per month monetary cost but a $1500 per month opportunity cost" based on the situation shown in the question above. The monetary cost is the certain amount which Jeanne will receive. The opportunity cost is the return which Jeanne could receive if she did not rent the house to his brother.
Answer:
(A) 9.6%
(B) 37,296,880
Explanation:
Current earnings for Bennington Enterprise is $34.03 million
The ROE is 12 percent
= 12/100
= 0.12
Retention ratio is 80 percent
= 80/100
= 0.8
(A) The firms earning growth rate can be calculated as follows
= 0.8× 0.12
= 0.096×100
= 9.6%
(B) Next year earnings can be calculated as follows
= 34,030,000 × (1+0.096)
= 34,030,000× 1.096
= 37,296,880
Answer:
$73.333
Explanation:
10% of the initial 2 billion = 200000000
getting the information from the promblem we have that...
initial cost is 2 billion. Total fixed cost 2200000000.
in this way the average fixed cost is calculated with this formula
AFC= average fixed cost
AFC = 2200000000 / 30000000
AFC= $73.333 for the option A facility
Answer:
Tinker, Evers and Chance inventory investment 10 millions
Explanation:
Inventory investment:
Will be the diference in amount betwene the ending and beginning invnetory. It assumes that a company will use the revenue from sale to at least maintan ther inventory.
When the company invest on inventory, it meas it increase their stock of goods.
A company will disinvest if the ending is lower than beginning, because the sales proceeds were not used to purchase inventory.
Ending inventory - beginning inventory = inventory investment
70 - 60 = 10