subject
Business, 09.10.2021 22:40 callieroberts7603

Kim used to work at "The Big One" accounting firm, and she earned $50,000 a year. She saved her money and has now invested $100,000 in her own firm. Profit is $20,000 a year, which Kim receives as her only compensation. She concludes that this is great because a 20 percent return is much better than the 8 percent she could get in another investment (the opportunity cost of the funds). What is wrong with this line of thinking?

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 03:40, josie122
Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?
Answers: 1
image
Business, 22.06.2019 09:40, bennett2968
Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?
Answers: 1
image
Business, 22.06.2019 10:30, pierrezonra
What are the positive environmental trends seen today? many industries are taking measures to reduce the use( _gold, carbon dioxide, ozone_) of -depleting substances and are turning to(_scarce, renewable, non-recyclable_) energy sources though they may seem expensive. choose one of those 3 option to fill the
Answers: 3
image
Business, 22.06.2019 21:40, redrhino27501
The farmer's market just paid an annual dividend of $5 on its stock. the growth rate in dividends is expected to be a constant 5 percent per year indefinitely. investors require a 13 percent return on the stock for the first 3 years, a 9 percent return for the next 3 years, a 7 percent return thereafter. what is the current price per share? select one: a. $212.40 b. $220.54 c. $223.09 d. $226.84 e. $227.50 previous pagenext page
Answers: 2
You know the right answer?
Kim used to work at "The Big One" accounting firm, and she earned $50,000 a year. She saved her mone...

Questions in other subjects: