You own and operate a bike store. each year, you receive revenue of $200,000 from your bike sales, and it costs you $100,000 to obtain the bikes. in addition, you pay $20,000 for electricity, taxes, and other expenses per year. instead of running the bike store, you could become an accountant and receive a yearly salary of $40,000. a large clothing retail chain wants to expand and offers to rent the store from you for $50,000 per year. how do you explain to your friends that despite making a profit, it is too costly for you to continue running your store?
(a) find your accounting profit.
(b) find your economic profit.
(c) explain your decision.
Answers: 1
Business, 22.06.2019 01:00
Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.
Answers: 3
Business, 22.06.2019 13:30
Over the past year, three of the star salesmen at family resorts international's corporate office have been lured away to competitors. on top of that, karina, the general manager of the sales department, has noticed that most employees come in, do their jobs, and leave. family resorts offers a good salary, benefits, and tuition reimbursement, as well as a number of development and training programs. most employees seem contented enough, but karina would like to do something to increase the level of engagement among her staff. what do you think karina should do?
Answers: 1
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