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2 years ago

Explain the opportunity cost of working on a farm.

Business

1 answer:

Liula [17]2 years ago

8 0

Answer:

Opportunity cost is a useful concept when considering alternative places for using your resources and assets. ... If he/she farms the land, the opportunity cost is the income foregone by not renting it to a neighbor.

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A person buys X in one market and combines it with Y purchased in another market. The combination of X and Y gives Z, which the

Sindrei [870]

Answer:

arbitration

Explanation:

Arbitration occurs when the price of a security or a commodity varies significantly between different markets. For example, I purchase gold in the United Kingdom at a lower price than in the United States, and I bring it to the United States and make a profit. Arbitration opportunities result from market inefficiencies and a lack of a single price.

8 0

3 years ago

You are given the following information for Lightning Power Co. Assume the company's tax rate is 35 percent.

olga55 [171]

Answer:

The company's WACC is 9.14%

Explanation:

cost of preferred stock

= (dividend on preferred stock)/(current market price)

= [$100*4%]/$72

= 5.56%

total finance = debt + equity + preferred stock

= (8,000*$1,060) + (310,000*$57) + (15,000*$72)

= $8,480,000 + $17,670,000 + $1,080,000

= $27,230,000

weight of debt = debt/total finance

= $8,480,000/$27,230,000

= 0.31

weight on equity = equity/total finace

= $1.080.000/$27,230,000

= 0.04

WACC

= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)

= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)

= 9.14%

Therefore, The company's WACC is 9.14%

5 0

2 years ago

The net cash flow from operating activities is an inflow of $47,042, the net cash flow from investing activities is an outflow o

Alex_Xolod [135]

Answer:

$9,097

Explanation:

Net cash flow from operating activities = + $47,042

Net cash flow from investing activities = - $21,831

Net cash flow from financing activities = - $28,397

Net cash flows for the period = - $3,186

Beginning cash account balance = $12,283

Net cash flows for the period = - $3,186

Ending cash balance = $9,097

5 0

3 years ago

Bob and Lisa are both married, working adults. They both plan for retirement and consider the $2,000 annual contribution a must.

ikadub [295]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

Download xlsx

6 0

3 years ago

Assume Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her

Marizza181 [45]

The question is incomplete. However, it is about the calculation of after-tax cost of payment

Answer:

After-tax cost = payment*(1-0.37)

Explanation:

The after-tax cost is the net cost after the deduction of the amount of tax from the actual payment. In most cases, the value of the tax deduction is determined by multiplying the marginal tax rate with the payment. Then, the magnitude of the after-tax cost can be estimated by subtracting the payment from the tax deduction.

7 0

3 years ago

Explain the opportunity cost of working on a farm. ​

Explain the opportunity cost of working on a farm.