Answer:
accounting profit = $25
Total cost = $15
Economic profit = $15
Explanation:
given data
spends = $5
Implicit cost = $10 per hour
sell = $30
to find out
calculate the total cost for one photo frame
solution
first we calculate here accounting profit that is
accounting profit = Sale price - cost spent on materials
accounting profit = $30 - 5
accounting profit = $25
and
Total cost = Explicit cost + Implicit cost
Total cost = 5 + 10
Total cost = $15
and Economic profit will be
Economic profit = Accounting profit - implicit costs
Economic profit = $25 - $10
Economic profit = $15
Answer:
The multiple choices are as follows:
18.6%
14.0%
22.8%
25.0%
The second option is the correct answer,14%
Explanation:
The capital asset pricing asset model formula for computing a firm's cost of equity according to Miller and Modgiliani is given below:
Ke=Rf+Beta*(Mr-Rf)
Rf is the risk free of 2% which is the return expected from zero risk investment such as government treasury bills.
Beta is how risky an investment in a company is compared to similar businesses operating in similar business sector of the company given as 2.0
Mr is the expected return on market portfolio which 8%
Ke=2%+2*(8%-2%)
Ke=2%+2*(6%)
Ke=2%+12%=14%
Your way, inc is a furniture store located in Dallas, Texas, United States, it makes unique and fine pieces of furnitures, they also repair and recover them.
because the person who made it likes to make people mad/sad
