Suppose a Famous Baseball Player, Alex Rodriguez, Hires a Highschool

question 122

Multiple Choice

Suppose a famous baseball player, Alex Rodriguez, hires a highschool student to paint his house. Which of the following is mostlikely TRUE?

• A)The opportunity cost of painting a house is higher for Alex Rodriguez than for the high school student.(True Answer
• )Correct
• B)The opportunity cost of painting a house is lower for Alex Rodriguez than for the high school student.
• C)The opportunity cost of painting a house is the same for Alex Rodriguez as for the high school student.
• D)The opportunity cost of painting a house is zero for Alex Rodriguez and is negative for the high school
• Student.

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Definitions:

Modest Dividend

A relatively small or conservative amount paid out to shareholders from a company's earnings.

Implied Constant Growth

A concept in financial modeling that assumes a company or economy will continue to grow at a consistent rate indefinitely, impacting valuation methods.

Kyocera

A multinational corporation based in Japan, specializing in ceramic and electronic products.

Last Dividend

The most recent distribution of profits made by a corporation to its shareholders.