Why does an investment have an opportunity cost rate even when the funds employed have no explicit

Question:

Why does an investment have an opportunity cost rate even when the funds employed have no explicit cost?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management

ISBN: 9781640551862

7th Edition

Authors: Kristin L. Reiter, Paula H. Song

See More Books

Question Posted: Mar 09, 2024 11:00 AM

See More Questions

Why does an investment have an opportunity cost rate even when the employed funds have no explicit cost?
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Ann Carter, Chief Financial Officer of Consolidated Electric Company (Con El), must make a recommendation to Con Els board of directors regarding the firms dividend policy. Con El owns two...
You and Sam have been in touch since the Palm Beach Business Development Luncheon, and he has expressed interest in your working on his business audit. The two of you make plans to meet for lunch,...
Estimate how many solar neutrinos pass through a 180-m2 ceiling of a room, at latitude 44, for an hour around midnight on midsummer night.
Determine the natural frequencies and normal modes of the torsional system shown in Fig. 5.38 for $k_{t 2}=2 k_{t 1}$ and $J_{2}=2 J_{1}$. k J k 2 FIGURE 5.38 Two-degree-of-freedom torsional...
In the UK views of performance improvement have been influenced by the US literature, the Japanese experience and the HRM strategy literature. lo1
The SEC Form 10-K of Google can be found online at www.wiley.com/college/pratt. REQUIRED: Review the Google SEC From 10-K, and answer the following questions: a. Does Google carry investment...
1. Consider a American style fixed-strike lookback put option on a stock. The current stock price is $10, the volatility is 30% p.a., the dividend yield is 2% p.a., the risk-free interest rate is 5%...
Describe how present values of uneven cash flow streams are calculated using a regular calculator and using a spreadsheet.
How does the present value of a lump sum to be received in the future change as the time is extended and as the interest rate increases?
Write an interactive computer program to calculate the heat transfer rate and the value of temperature anywhere in the medium for steady one-dimensional heat conduction in a spherical shell for any...
The issue of Royal Rose Manufacturing Co., Ltd. with many new employees is the low level of production. Although the company implements training programs for employees, the skill improvement of...
For safety reasons an elevator stops with an acceleration of g/3 in the case of an emergency. Let's assume an unusually high ceiling of the elevator to hang three sections lamp one below the other...
Can Google be characterized as a monopoly? Justify your answer by specifying and comparing the characteristics of a monopoly with those of Google. What is competition law? How would you justify the...
In the case below design and draw a Rich Picture that identifies the key stakeholders, actors, power and decision-making authorities. The novel coronavirus has turned the world upside down as a...
1. Two spherical stars A and B have densities PA and PB, respectively. A and B have the same radius, and their masses MA and M are related by MB = 2M. Due to an interaction process, star A loses some...
Explain specifically why Qwests failure to disclose the extent of nonrecurring revenue violated the full disclosure principle in this situation.
Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan.
A company currently pays a dividend of $2 per share, D 0 = $2. It is estimated that the company's dividend will grow at a rate of 14% per year for the next 2 years, then the dividend will grow at a...
A company currently pays a dividend of $2 per share, D 0 = $2. It is estimated that the company's dividend will grow at a rate of 14% per year for the next 2 years, then the dividend will grow at a...
A stock's most recent dividend was $1.80. The dividend is expected to grow by 6% and investors require an 11% return for holding the shares. a. What is the value of the stock? b. What proportion of...
Los siguientes datos corresponden a las operaciones de Turk Company el ao pasado: Ventas $ 900 000 Utilidad operativa neta $ 36 000 Margen de contribucin $ 150 000 Activos operativos promedio $ 180...
Problem 16-16 Tax Shields (LO2) River Cruises is all-equity-financed with 53,000 shares. It now proposes to issue $280,000 of debt at an interest rate of 12% and to use the proceeds to repurchase...
In a process costing system, companies use predetermined overhead rates to apply overhead

Why does an investment have an opportunity cost rate even when the funds employed have no explicit

Question:

Step by Step Answer:

Even when the funds employed in an investment do not have an explicit cost there is still an opportu...View the full answer

Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management

Students also viewed these Business questions