Suppose that Mighty Mike's Sandwich Shop was started in 1998 and 100 percent of the $250,000 needed to start up the company was raised by selling shares of stock. In 2000, the company distributed its entire profit of $15,000 to shareholders
If the market interest rate is 5 percent, what is the level of economic profit earned by the firm's stockholders?
If the market rate of interest is 5 percent, then the opportunity cost of capital is $12,500 ($250,000 ? 0.05). Therefore, the shareholders are earning an economic profit of $2,500.
Economics
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Refer to Table 4.2. If you choose to invest in Japanese bonds, your investment return from Scenario D will be
A) 1%. B) 3%. C) 7%. D) 13%.
Economics
In the United States, labor earnings are about what percent of total income?
a. 75 percent b. 70 percent c. 67 percent d. 50 percent
Economics