Corporation engaged in the retail grocery business

Assignment Help Management Theories

Reference no: EM131045696

Eldon's Super Fresh Stores, Inc., is a corporation engaged in the retail grocery business. William Drexler was the attorney for and the corporate secretary of Eldon's and was also the personal attorney of Eldon Prinzing, the corporation's president and sole shareholder. From January 2010 through January 2011, Drexler maintained an active stock trading account in his name with Merrill Lynch. Eldon's had no such account. On August 12, 2010, Drexler purchased one hundred shares of Clark Oil & Refining Company stock through his Merrill Lynch stockbroker. He paid for the stock with a check drawn by Eldon's made payable to Merrill Lynch and signed by Prinzing. On August 15, 2010, Merrill Lynch accepted the check as payment for Drexler's stock purchase. There was no communication between Eldon's and Merrill Lynch until November 2011, fifteen months after the issuance of the check. At that time, Eldon's asked Merrill Lynch about the whereabouts of the stock certificate and asserted a claim to its ownership. Does Merrill Lynch qualify as a holder in due course? Why?

Reference no: EM131045696

Questions Cloud

Interest is paid semiannually : Sunn's Co.'s bonds, maturing in 9 years, pay 15 percent interest on a $1000 face value. However, interest is paid semiannually. if your required rate of return is 11 percent, what is the value of the bond? How would your answer change if the interest..

Two bond issues outstanding-paying the same annual interest : Crawford inc has two bond issues outstanding, both paying the same annual interest of $110, called series A and series B. Series A has a maturity of 12 years, whereas series B has a maturity of 1 year. Why does the longer term (12 year) bond fluctuat..

Give a detailed sketch of this algorithm : For simplicity, assume a perfect timeout mechanism that detects a lost packet exactly 1 RTT after it is transmitted.

What will cash flows for project-before-tax operating costs : You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $60,000. The truck falls into the MACRS 3-year class, and it will be sold after three years for $20,900. Use of the truck wil..

Corporation engaged in the retail grocery business : Eldon's Super Fresh Stores, Inc., is a corporation engaged in the retail grocery business. William Drexler was the attorney for and the corporate secretary of Eldon's and was also the personal attorney of Eldon Prinzing, the corporation's presiden..

What is the expected capital gains yield-dividend yield : The next dividend payment by Wyatt, Inc., will be $3.25 per share. The dividends are anticipated to maintain a growth rate of 7.0 percent, forever. Assume the stock currently sells for $50.10 per share. What is the dividend yield? % What is the expec..

What would be the effective interest rate : Compensating balance. On January 2, 20X1, Uptown Hospital established a line of credit with First Union National Bank. The terms of the line of credit called for a $400,000 maximum loan with an interest rate of 3 percent. The compensating balance req..

R''s queue size is now irrelevant why : Assume a static timeout value of 2 seconds, that slow start is used on a timeout, and that ACKs sent at about the same time are consolidated. Note that R's queue size is now irrelevant (why?).

Defense of failure of consideration : Donna gives Peter a check for $2,500 in return for a laptop computer. The check is dated December 2. Peter transfers the check for value to Howard on December 14, and Howard deposits it in his bank on December 20.

User Account

All Pages