Hans Can Do 4 Loads of Laundry Per Hour,and He

question 87

Multiple Choice

Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Hans' opportunity cost of typing one page is:

• A)12 loads of laundry.
• B)8 loads of laundry.
• C)3/2 of a load of laundry.
• D)2/3 of a load of laundry.
• E)impossible to compute without additional information.

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Definitions:

Debt-equity Ratio

The indicator showing the proportionality of equity and debt in the financial backing of a company’s assets.

Market Price

The current bid price at which an asset or service can be transacted.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.

Cost of Equity

The return that investors expect for investing in a company's equity, often calculated by the Capital Asset Pricing Model (CAPM).