Answer:
D. Opportunity cost.
Explanation:
Since she could have taken a job and would have earned $62,000, this represents opportunity cost, lost due to the decision of starting her own apparel store. Opportunity cost is the cost of foregone alternative. Therefore, if there are two alternative X and Y, and alternative Y has a benefit of $M, then by choosing alternative X, the decision-maker is giving up a benefit equal to $M, which is the opportunity cost associated with choosing alternative X over alternative Y.
<span>If the woman starts out with a salary that we can call X, then is given a pay cut of 10%, her salary will at that point be 0.9X. However, if she is then later given a raise from that salary of 30%, her new salary will be the 0.9X * (1+0.3) = 1.17X. So, in aggregate, she will have seen a 17% increase in her base salary over the period.</span>
Answer: monopolistically competitive industry
Explanation:
Based on the above information, Hot Wok Cuisine is most likely operating a monopolistically competitive industry.
This is a type of industry whereby the firm's make their own pricing and output decisions. There are large number of competitors, but the products that they sell are slightly different from one another. Also, there some entry barriers.
We can infer that the restaurant differentiates itself from a large number of competitors by providing exclusively organic Chinese cusine and there are entry barriers.
Answer:<u> </u><u><em>Relevant cost of new preferred stock = 10.53%</em></u>
Explanation:
Given:
Dividend = $4.00 per share
Selling for = $40 per share.
Flotation costs = 5% of the selling price.
Marginal tax rate is 30%.
We can compute the cost of new preferred stocks using the following formula:
∴ Relevant cost of new preferred stock = 10.53%
Therefore, the correct option is (d)