I think it’s higher the risk and the lower present value
Answer: $8,600
Explanation:
Implicit cost is also known as the opportunity cost which means that it is the benefit of the next best alternative that was foregone when the current decision was made.
The implicit cost here is therefore:
The $8,000 that Charles could have been making as a lifeguard.
The interest per year he could have been earning on the $5,000 he used to buy mowing equipment.
The depreciation on the mowing equipment because depreciation is not an explicit cost but an implicit one.
= 8,000 + (2% * 5,000) + (10% * 5,000)
= 8,000 + 100 + 500
= $8,600
If a portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. The portfolio beta is 1.119.
<h3>Portfolio beta</h3>
Using this formula
Portfolio beta=(Stock A portfolio×beta)+[(1-Stock A porfolio)× Stock B beta]
Let plug in the formula
βp = (.65 × 1.21) + [(1 - .65) × .95]
βp = (.7865) + [.35 × .95]
βp= .7865+ .3325
βp = 1.119
Therefore the portfolio beta is 1.119.
Learn more about portfolio beta here:brainly.com/question/14986133
Answer:
The cash received by ABC company from the issuing of stock is $15,000.
Explanation:
It is given that ABC company issued 3000 shares of stock for $5 per share.
The cash received by ABC company from the issuing 3000 shares of stock is


It is also given that ABC company issued 5000 shares for land valued at $10,000. It means ABC company received land instead of cash. So, total cash received by ABC company from the issuing of stock is $15000
Therefore, the cash received by ABC company from the issuing of stock is $15,000.
Answer:
B) $.10.
Explanation:
All the cost used in the production process is called production cost.
Capital cost = Units x Cost per unit = 2 x $10 = $20
Raw Material cost = Units x Cost per unit = 5 x $4 = $20
Labor cost = Units x Cost per unit = 8 x $3 = $24
Total Cost = Capital cost + Raw Material cost + Labor cost
Total Cost = $20 + $20 + $24 = $64
Cost per unit = Total cost / Number of units = $64 / 640 = $0.10