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Alekssandra [29.7K]

3 years ago

7

Bubba is a shrimp fisherman who used $2,000 from his personal savings account to buy a boat and equipment for his shrimp busines

s. the savings account paid 2% interest. what is bubba's annual opportunity cost of the financial capital that he invested in his business?

1 answer:

oee [108]3 years ago

7 0

2040 I think because 2 percent of 2000 is 40 so you add 2000+40 and you get 2040

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Costs, such as investigating the possibilities of and actually creating or acquiring a trade or business.

Mnenie [13.5K]

Answer:

Start up costs

Explanation:

By definition Startup costs "are the expenses incurred during the process of creating a new business". W can classified as pre start up costs and post start up costs.

For the pre start up costs we have for example research, borrowing costs, and expenses for technology and science.

For the post-opening startup costs we have advertising, promotion, and expenses related to the company.

So the best description for startp up costs is: "Costs, such as investigating the possibilities of and actually creating or acquiring a trade or business."

3 0

2 years ago

Assets Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equi

Reil [10]

Answer:

9.73%

Explanation:

the market value of equity = 10,000,000 stocks x $15 = $150,000,000

the market value of debt = 40,000 bonds x $1,150 = $46,000,000

total = $196,000,000

weight of equity = 0.7653

weight of debt = 0.2347

Re = 3.5% + [1.35 x (0.115 - 0.055)] = 0.035 + 0.081 = 0.116

cost of debt = ytm = {36.25 + [(1,000 - 1,150)/40]} / [(1,000 + 1,150)/2] = (36.25 - 3.75) / 1,075 = 32.50 / 1,075 = 0.03023 x 2 = 0.0605

after tax cost of debt = 0.0605 x (1 - 40%) = 0.0363

WACC = (0.116 x 0.7653) + (0.0363 x 0.2347) = 0.09729 = 9.73%

3 0

3 years ago

Which of the following has the elements of the supply chain in the correct order?

irina1246 [14]

I believe the answer would be C because first we gather materials like cotton strings ect, then we produce it and make something out of cotton and strings ect, and then we distribute it to retail to get sold and earn money. Hope this helps!

6 0

3 years ago

What are two advantages of bonds for their users?

8_murik_8 [283]

Answer:

Explanation:

Bonds have some advantages over stocks, including relatively low volatility, high liquidity, legal protection, and a variety of term structures.

3 0

3 years ago

Read 2 more answers

A firm has issued 10 percent preferred stock, which sold for $100 per share par value. The cost of issuing and selling the sto

rusak2 [61]

Answer:

The cost of preferred stock is 10.2%

Explanation:

The actual amount realized from issuing the preferred of $100 per share par value is the par value less cost of issuing and selling stock of $2 per share, in other words,$98($100-$2) was realized per share from the issuance.

Having known the net amount realized, the cost of preferred stock can be calculated as follows:

cost of preferred stock =return on preferred stock/net amount realized

return is 10% of $100(par value), i.e $10 per share

cost of preferred stock =$10/$98=10.2%

Note that preferred is not tax deductible like debt financing , hence the rate of tax given is not considered in determining the cost of preferred stock.

8 0

3 years ago