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Nadya [2.5K]
3 years ago
11

Bob lives in Houston and runs a business that sells boats. In an average year, he receives $842,000 from selling boats. Of this

sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this boat business, he can work as an accountant, receive an annual salary of $48,000 with no additional monetary costs, and rent out his showroom at the $38,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Darnell's costs as an implicit cost or an explicit cost of selling pianos.

a. The wholesale cost for the pianos that Darnell pays the manufacturer
b. The salary Darnell could earn if he worked as an accountant
c. The wages and utility bills that Darnell pays
d. The rental income Darnell could receive if he chose to rent out his showroom
Business
1 answer:
quester [9]3 years ago
3 0

Answer:

A. The wholesale cost for the pianos that Darnell pays the manufacturer.

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A growing trend to "Buy American" may encourage U.S. automakers to increase political pressure on Washington to pass legislation
Kazeer [188]

Answer:

C) a positive result from regulatory and economic environmental forces.

Explanation:

In the short run the whole economy will benefit, more American jobs will be created, consumers will probably get good cars at even lower prices, but on the long run the scenario may not be that good for everyone. If Toyota builds the plant, it will be the result of economic and political pressures, and that is a game that two can play, just ask farmers about the trade deal with China.

On the other hand, this is a type of deja vu (or been there, done that), and it ended up with GM and Chrysler bankrupt and Ford barely surviving. This types of policies were enforced in the 1980s by president Reagan and the famous "Made in the USA" by Bruce Springsteen. Back then Honda had a small factory and Toyota was starting to consider building a plant in the US, Nissan hadn't showed up yet. Fast forward a few years and the only good American vehicles are pickups, the Japanese brands wiped out the rest. The country is full of Camrys, Accords, Civics, Corollas, CRVs and Rav4s. They are great cars, too great for the American car manufacturers to compete against. Who knows, with this type of policies maybe in 10 years the only American car manufacturer left will be Tesla.

This is like playing with fire on top of a fuel truck.

5 0
3 years ago
The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks.
zheka24 [161]
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G= 5.34%The growth rate for stock required is 5.34%
7 0
3 years ago
Siebel Incorporated, a non-publicly traded company, has 2009 after-tax earnings of $25 million, which are expected to grow at 6
Readme [11.4K]

Answer:

Answer of each requirement is given seperatly below.

a What is the value of Siebel using the DCF method?

Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)

Putting values (assuming after tax earning is all in cash)

Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars

 

"WAAC calculation

Here WAAC is equal to cost of equity (ke) as company is debt free.

so

Ke = risk free rate + beta (risk premium)

    = 5 + 2.5 (6) = 20%

b What is the value using the comparable recent transactions method?

Based on recent tansaction the value of siebel incorporated will be               calculated as shown below

 Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars

Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.

c What would be the value of the firm if we combine the results of both methods?

By combining value of both value technique we get 189 + 250 = 439 million dollars.

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Does anyone know how to complete the "your checking account" packet? its for an Econ Ed class.
Elena-2011 [213]
Do you have a picture of it?
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Which of the following is not a key component of the merger model we walked through in the course?
Bas_tet [7]

Answer:

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