68. The Whitlow Hospital, a private not-for-profit hospital, uses as its performance indicator revenues and gains over expenses and losses. Which of the following items would be included in the calculation of this indicator? Unrealized gains on other than trading secu- rities. The securities are included in the un- restricted net assets. Contributions received from a donor in the current year that cannot be spent until the following year. a. Neither b. Both c. Unrealized gains only d. Contribution only

68. The Whitlow Hospital, a private not-for-profit hospital, uses as its performance indicator revenues and gains over expenses and losses. Which of the following items would be included in the calculation of this indicator? Unrealized gains on other than trading secu- rities. The securities are included in the un- restricted net assets. Contributions received from a donor in the current year that cannot be spent until the following year. a. Neither b. Both c. Unrealized gains only d. Contribution only

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 4.8P

See similar textbooks

Similar questions

When do firms receive money from a stock sale in their firm and when do they not receive money?
Many retirement funds charge an administrative fee each year equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest 5,000 in the same stock this year. Alexx invests directly and earns 5 a year. Spenser uses a retirement fund and earns 4.75. After 30 years, how much more will Alexx have than Spenser?
What are the- most common ways for start-up firms to raise financial capital?
How do the shareholders who own a company choose the actual company managers?
What is a capital gain?
If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to cant out a major expansion, would you prefer to raise the funds through borrowing or by issuing stock? Explain your choice.
Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is this fear true? Does a high risk mean the return must be low?
What does a share of stock represent?
What are some reasons why the investment strategy of a 30-year-old might differ flow the investment strategy of a 65-year-old?
3. Which of the following must be included in an organization’s statement of accounting profits for the statement to be of use?a. the estimated amount the organization could have earned pursuing other optionsb. the extent to which technological improvements increased productivityc. the percentages planned for reinvestment or distribution to investorsd. the period in which the profit was earned, such as a year or a quarter
4. Ted Baxter runs a small, very stable newspaper company insouthern Oregon. The paper has been in business for 25 years.The total value of the firm’s capital stock is $1 million, which Tedowns outright. This year the firm earned a total of $250,000after out-of-pocket expenses. Without taking the opportunitycost of capital into account, this means that Ted is earning a25 percent return on his capital. Suppose that risk-free bondsare currently paying a rate of 10 percent to those who buy them.d. How much excess profit is Ted earning?
4. Ted Baxter runs a small, very stable newspaper company insouthern Oregon. The paper has been in business for 25 years.The total value of the firm’s capital stock is $1 million, which Tedowns outright. This year the firm earned a total of $250,000after out-of-pocket expenses. Without taking the opportunitycost of capital into account, this means that Ted is earning a25 percent return on his capital. Suppose that risk-free bondsare currently paying a rate of 10 percent to those who buy them.a. What is meant by the “opportunity cost of capital”?b. Explain why opportunity costs are “real” costs even thoughthey do not necessarily involve out-of-pocket expenses. c. What is the opportunity cost of Ted’s capital?d. How much excess profit is Ted earning?