accounting profits and economic profits for Gomez’s pottery. Explicit costs: $37‚000 (= $12‚000 for the helper + $5‚000 of rent + $20‚000 of materials). Implicit costs: $22‚000 (= $4‚000 of forgone interest + $15‚000 of forgone salary + $3‚000 of entreprenuership). Accounting profit = $35‚000 (= $72‚000 of revenue - $37‚000 of explicit costs); Economic profit = $13‚000 (= $72‚000 - $37‚000 of explicit costs - $22‚000 of implicit costs). 8-4 (Key Question) Complete the following table by calculating
Premium Economics of production Variable cost Costs
Cost of Capital questions and practice problems Questions 1. What does the WACC measure? 2. Which is easier to calculate directly‚ the expected rate of return on the assets of a firm or the expected rate of return on the firm’s debt and equity? Assume you are an outsider to the firm. 3. Why are market-based weights important? 4. Why is the coupon rate of existing debt irrelevant for finding the cost of debt capital? 5. Under what assumptions can the WACC be
Premium Weighted average cost of capital Finance Stock
The Feed Resource Recovery case study presents many issues‚ however the major ones are; Opportunity‚ Entrepreneurship and Resources. This paper will discuss the issues and analyze the options and how to address them. Analysis of FEED Resource Recovery The Feed Resource Recovery concept is simple; to provide supermarket and restaurants with an onsite waste processing system that converts previously discarded food waste into a source of renewable energy and organic
Premium Business school Harvard Business School Venture capital
| January 30th 2012 | | Kyla Keast COMM1006 | [Case 3.4 GE Capital Canada] | Case Hand-in | Executive Summary For the case of GE Capital Canada‚ Clark Carriers submitted a request for a loan amounting to $270000. It was first confirmed that Clark Carriers met the minimal requirements set out by the commercial equipment financing division of GE for loans. Cash flow was then analyzed to ensure that Clark Carriers has sufficient cash flow from operations to make payments on current
Premium Generally Accepted Accounting Principles Balance sheet Asset
people. Some individuals prefer a state where the cost of living is affordable or the climate is close to their own last home. On the other hand‚ some emphasize the priority of demographics. Therefore‚ I decided to search for a state where the three major priorities can be found: the affordability of living‚ the climate and demographics. Thus‚ Oklahoma State is one of many states where the three major priorities can be found. Cost of living Cost of living is an important issue for every person
Premium Oklahoma Native Americans in the United States Colorado
the cooling towers. Three nuclear-powered American warships‚ (top to bottom) nuclear cruisersUSS Bainbridge and USS Long Beach withUSS Enterprise the first nuclear-powered aircraft carrier in 1964. Crew members are spelling out Einstein ’s mass-energy equivalence formula E = mc2 on the flight deck. The Russian nuclear-powered icebreakerNS Yamal on a 1994 joint expedition with theNSF. Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provided
Premium Nuclear power
the writing process? The Cost of Hope chronicles the extraordinary measures Amanda and Terence take to preserve not only Terence’s life but also the life of their family. After his death‚ Bennett uses her skills as a veteran investigative reporter to determine the cost of their mission of hope. What she discovers raises important questions many people face‚ and vital issues about the intricacies of America’s healthcare system. Rich in humor‚ insight‚ and candor‚ The Cost of Hope is an unforgettable
Premium Creative nonfiction Writing Rhetorical modes
Corporate Tax‚ Cost of Debt‚ Cost of Equity and Capital Structure: A case study of REITs and conventional real estate firms in the UK University of Groningen Faculty of Economics and Business BSc International Business January 2013 Table of contents 1. Introduction 4 2. REITs 7 3. Literature Review 9 3.1 Capital Structure Irrelevance 9 3.2 Present Models 10 4. Data and Methodology 12 4.1 Regression 12 5. Findings and Discussion 16 6. Conclusion 20 7. Appendix
Premium Corporate finance Tax Capital structure
Energy Economics 40 (2013) S12–S23 Contents lists available at ScienceDirect Energy Economics journal homepage: www.elsevier.com/locate/eneco On the economics of renewable energy sources Ottmar Edenhofer a‚b‚c‚⁎‚ Lion Hirth a‚d‚ Brigitte Knopf a‚ Michael Pahle a‚ Steffen Schlömer a‚ Eva Schmid a‚ Falko Ueckerdt a a Potsdam Institute for Climate Impact Research‚ P.O. Box 601203‚ 14412 Potsdam‚ Germany Economics of Climate Change‚ Technische Universität Berlin‚ Straße des 17‚ Juni 145
Premium Renewable energy Energy development World energy resources and consumption
considered by many to be the best way to enhance customer satisfaction. Cost saving and improve productivity : Improving quality is the best way to reduce manufacturing costs and to increase productivity. → Bird-eye view : TI want to do their job right the first time. Their organizations treat strategic planning and quality improvement planning as an integrated activity. They want to find hidden quality costs and reduce hidden costs using COQ. 2) Reason of choosing a financial measure of quality
Premium Costs Total quality management Quality control