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Which of the following statements about opportunity costs is incorrect?
a. The opportunity cost rate to be applied to any investment is the rate of return that could be earned on alternative investments of similar risk.
b .In general, higher-risk investments should have higher opportunity costs than lower-risk investments have.
c. Opportunity cost rates are normally obtained by examining the returns on securities investments.
d. The opportunity cost rate typically is applied in discounting situations (as opposed to compounding).
e. Say you just inherited $10,000. Because this money cost you nothing, it has an opportunity cost rate of zero.
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which of the following is used to only allow you to insure an item when you yourself would suffer a loss should the item be damaged? In which qualified plan, a predetermined amount of percentage of salary is paid out upon retirement:
You purchased a commercial building and lot for $340,000 on May 4th, 2014. The lot itself was valued at $85,000 when purchased. You sold the lot and building for $400,000 on March 15th of 2015. Use MACRS depreciation and note that this property is co..
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ABC’s next dividend is expected to be $3.25, its required return is 21%, its growth rate is 6%. What is ABC's expected stock price in 16 years?
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