Answer:
the opportunity cost of the land purchase is $34,050
Explanation:
The computation of the opportunity cost of the land purchase is shown below;
= Cash outlay × return percentage
= $227,000 × 15%
= $34,050
Hence the opportunity cost of the land purchase is $34,050
We simply multiplied the cash outlay with the return percentage so the same would be calculated
Answer and Explanation:
a)
If you charge $40 for X then everyone will buy as everyone is willing to pay atleast $40. this means all three groups buy that is 3*1000 buyers.So profit from X = 3000*40= $120,000
And since everyone is willing to willing to pay atleast $60 for Y again all three groups will buy so profit from Y =3000*60=$180,000
profits=$300,000
b)
If you charge $90 and $160 for X and Y respectively you will have only 1000 buyers for each product as others are unwilling to pay this much.
So profits = 1000*90 + 1000*160=$250,000
c)
for a bundle of X and Y buyers are willing to pay a total of $150, $210 and $200 across the three categories.
So everyone will buy a bundle of 1 X and 1 Y.
profits = 150*3000= $450,000
d)
If you charge $210 only the second will buy as they are willing to pay that much so profits =1000*210=$210,000
Also by selling X at $90 group 1 will buy X; profits=1000*90=$90,000
and by selling Y at $160 group 3 will buy Y; profits=1000*160=$160,000
total profits =$460,000
Answer and Explanation:
To pay for a twelve ounce can it costs between 50 cents to a dollar. The social costs of producing a can coke, in which 9 liters of fresh water is used which effects fresh water supply on earth due to its contamination. The cost of making coke :costs more higher, where it has to maintain its employees, buildings, its road transportation, garbage disposal, and many more. People who are living near the coke plant building pays all these costs, and all people pays a equal part as it is taking from earth.
Answer:
$4,750
Explanation:
The computation of the depreciation expense is shown below:
= (Original cost - residual value) ÷ (useful life)
where,
Original cost = $18,000 + $500 + $2,500 = $21,000
And, the other items would remain same
Now put these values to the above formula
So, the value would be equal to
= ($21,000 - $2,000) ÷ (4 years)
= ($19,000) ÷ (4 years)
= $4,750
Total capital = 10 + 8 + 2 = 20 Million
Weight of bonds (Wd) = 10/20 = 0.5
Weight of preferred stock(Wp) = 2/20 = 0.1
Weight of stock equity(We) = 8/20 = 0.4
Cost of debt = YTM of the bonds issued (We assume its annual coupon)
YTM =rate(nper,pmt,pv,fv) in excel =rate(20,60,-950,1000) = 6.4521%
Cost of debt after tax(Rd) = 6.4521*(1-0.34) = 4.2584%
Cost of preferred shares (Rp) = Preferred dividend/ price = 2.5/25 = 0.10 =10%
Cost of equity (Re) = Rf + beta*(Rm-Rf) = 3.5 + 1.2*(13-3.5) =14.9%
WACC = Wd*Rd + Wp*Rp + We& Re
WACC = 0.5*4.2584% +0.1*10% + 0.4*14.9% = 9.089 = 9.09%
