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2 years ago

Multiple choice!

Business

1 answer:

kodGreya [7K]2 years ago

7 0

Answer:

Spillover cost.

Explanation:

Spillover cost refers to those costs or changes in the value of a certain good that are caused by issues external to the intrinsic characteristics of said good. Thus, for example, external influences such as limitations on oil extraction or the development of electric cars can generate a massive drop in the prices of conventional gasoline cars. Another clear example of this situation is the one described in the question, where a negative change in a certain neighborhood can lower the prices of the houses found there.

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Sharon Tate has a mutual fund and she has all dividend income and capital gains income used to purchase additional shares in her

Leno4ka [110]

B. A Reinvestment Plan.

Hope this help! :)

5 0

3 years ago

Read 2 more answers

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch

cricket20 [7]

Answer:

a) Present value of the investment: $198,936

b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.

c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch

Explanation:

Please find detailed of calculation in (a) which is shown as below:

Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.

7 0

3 years ago

Don Juan, a single taxpayer, is the sole owner of DJ’s Inc., an S Corporation. This year, DJ’s Inc. incurred a massive $600,000

Darina [25.2K]

Answer:

Don Juan is sole business owner and his loss in excess to the minimum threshold amount is $250,000. So Don Juan may deduct the amount $350,000 in terms of loss.

If Don Juan does not deduct the loss this year, it would be carried forward to next fiscal statement

Explanation:

Part 1. The calculation is made as below

Excess of business loss ($600,000) – (other business income + Threshold amount ($250,000))

The minimum threshold amount is deductible from the Tax comes out to be $350,000

Part 2. The loss is reflected in next year’s tax statement as net operating loss and can be carried forward. So if Don Juan miss the loss deduction claim, he can do it next year.

4 0

3 years ago

Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs fro

forsale [732]

Answer: Informative Advertising

Explanation:

Informative Advertising is a form of advertising where a company gives some details about the benefits of using a product and somethings they do differently from their competitors in the market.

Minute Yoghurt needs to inform their market of the special steps of blending and cleaning they applying when producing their product.

7 0

3 years ago

The Sports Club plans to pay an annual dividend of $1.20 per share next year, $1.12 per share a year for the following two years

Delicious77 [7]

Answer:

$9.63

Explanation:

Data provided in the question:

Year Annual dividend paid

1 $1.20

2 $1.12

3 $1.12

4 $14.20

Now,

Year Annual dividend paid Present value factor Present value

1 $1.20 0.84246 1.011

2 $1.12 0.84246 0.7949

3 $1.12 0.59793 0.6696

4 $14.20 0.50373 7.1529

===============================================================

Worth of stock = 1.011 + 0.7949 + 0.6696 + 7.1529

= $9.6284 ≈ $9.63

Note:

Present value factor = [ 1 ÷ (1 + 0.187)ⁿ]

here,

n is the year

7 0

3 years ago