Answer:
A. Bill chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds.
Explanation:
An agency conflict problem usually arises when the agent (managers) do not act in the best interest of his principals (e.g. shareholders) usually because of selfish interests of the agent (manager).
I hope my answer helps you
Answer:
"$4,417,800" is the correct solution.
Explanation:
According to the question,
Principal amount,
= $5,000,000
Number of period will be:
=
=
Interest rate yield per period will be:
=
= %
Interest rate started per period will be:
=
= %
Now,
The present value of principal will be:
=
=
= ($)
The present value of interest will be:
=
=
= ($)
hence,
The issue price of bonds will be:
=
= ($)
A report sketching out an individual's monetary position at a certain period of time.
Answer:
A. Opportunity cost exists only for goods with monetary values.
Explanation:
Fundamentally, these are costs in economics used in analysis of a project, and it can also be used for calculation of cost benefits. It is generally known to measure or do all calculation that deals with the current and also forgone alternatives in any condition but this is mainly in economics where it is mostly used.
It is said that when a person buys two or more items, the concept of opportunity cost applies even though she can afford to buy both items and also known to be the best alternative. Here also, cost is notified as foregone opportunity.
Answer: $9025 §1231 loss
Explanation:
From the question, we are informed that Sumner sold equipment that it uses in its business for $30,800 and that the equipment was bought a few years ago for $79,600.00 and has claimed $39,775 of depreciation expense.
Assuming this is Sumner's only disposition for the year, the amount and type or character of Sumner's gain or loss goes thus:
The book value of the equipment will be:
= $79600 - $39775
= $39825
Since the equipment is sold for $30,800, the loss will be:
= $39825 - $30800
= $9025
It should be noted that there will be no depreciation recapture because the asset is sold for a loss.