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pogonyaev
2 years ago
15

What is the first step that a smart new-car buyer should take before talking to salespersons and putting a deposit on a car? A.

Test-drive the car. B. Obtain car insurance. C. Study the car market. D. Shop around for a car loan.
Business
1 answer:
Jlenok [28]2 years ago
3 0

Answer:

C. Study the car market.

Explanation:

When a person is about to buy a new-car, <u>he/she first have to see the car market which includes its price, model, performance, type of fuel, etc.</u> After this, he/she has to first confirm that the car is suitable for him/her.

Test-drive, car insurance and taking car loan are further steps. When the buyer is fully aware of the car and its market and then he/she will look up to these things.

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Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000
Umnica [9.8K]

Answer: C. Sebastian's economic profit is $4,000, and his accounting profit is $34,600.

Explanation:

Total Revenue = $50,000

Purchase of supplies = $15,000

Loan = $20,000 at 2% interest

Personal saving withdrawal = $20,000

Interest on personal savings = 3%

Accounting profit = Revenue - Expenses

Revenue = $50,000

Expenses = purchase in supplies + interest in loan

Expenses = $15,000 + (0.02 × 20,000)

Expenses = $15,000 + $400 = $15,400

Accounting profit = $50,000 - $15,400 = $36,600

Economic Profit = Accounting profit - Opportunity cost

Here best opportunity foregone = $30,000

Interest forgone on personal saving= $20,000 X 0.03 = $600

Total opportunity cost = $30,000 +$600 = $30,600

Thus Economic Profit = $34,600 - $30,600

= $4,000

7 0
2 years ago
Andrew has been asked to estimate future cash flows for his company. He is having a hard time remembering how to estimate future
Sonja [21]

Answer: Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.

Explanation:

From the question, we are informed that Andrew has been asked to estimate future cash flows for his company and that he is having a hard time remembering how to estimate future cash flows from his accounting classes.

Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.

7 0
2 years ago
A firm has 1,000 shareholders. Both you and Ms. Hostile are among them. Ms. Hostile owns 150 shares and is trying to fire the ma
Andrej [43]

Answer:

$28.24

Explanation:

Total value of the firm's equity = 1000 shares * $30

Total value of the firm's equity = $30,000

Amount paid to Ms. Hostile = 150 shares*($30+$10)

Amount paid to Ms. Hostile = 150 shares * $40

Amount paid to Ms. Hostile = $6,000

Value of equity after paying =  Total value of the firm's equity - Amount paid to Ms. Hostile

Value of equity after paying = $30,000 - $6,000

Value of equity after paying = $24,000

No. of shares remaining = 1,000 shares - 150 shares

No. of shares remaining = 850 shares

Value of each share = Value of equity after paying/No. of shares remaining

Value of each share = $24,000 / 850 shares

Value of each share = $28.23529

Value of each share = $28.24

3 0
2 years ago
4. Human judgment and experience can play a role in the advent of stock market crash because
notka56 [123]

Answer:

Investors with an experience of financial crises are better at diversifying their portfolios

Explanation:

When an investor has experienced a financial crisis in the past, and decides to diversify his investment portfolio as a result, he is using both human judgment and experience to take the best decisions available to him.

Diversifying your investment porftolio is a good decision because it reduces risk (although it may also reduce profitability so there is a trade-off). Investors with past experience tend to spread their investments in order to reduce risk and avoid large losses. They do this because they see the possibility of a new financial crisis in the near future.

8 0
2 years ago
Each of two stocks, C and D, are expected to pay a dividend of $3 in the upcoming year. The expected growth rate of dividends is
Stels [109]

Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

growth rate of dividends = 9%

stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock )  .................1

intrinsic value = \frac{3}{(0.10-0.09)}    

intrinsic value = \frac{3}{0.01}  

intrinsic value = 300

so intrinsic value of Stock C is 300

8 0
2 years ago
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