ohn invested $12,000 in the stock of Hyper Cyber Eight years later, Hyper Cyber's shares reached S125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold and the proceeds invested in another investment, they would likely eam 59% per annum. Which of the following terms and values is correct? $125,000 is the opportunity cost of selling the shares today $12.000 is a sunk cost $250,000 is the opportunity cost $2000 is the opportunity cost None of the above
ohn invested $12,000 in the stock of Hyper Cyber Eight years later, Hyper Cyber's shares reached S125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold and the proceeds invested in another investment, they would likely eam 59% per annum. Which of the following terms and values is correct? $125,000 is the opportunity cost of selling the shares today $12.000 is a sunk cost $250,000 is the opportunity cost $2000 is the opportunity cost None of the above
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 2P
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT