Ball writes to Sullivan and inquires how much Sullivan is asking for a specific forty-acre tract of land Sullivan owns. Ball then receives a letter from Sullivan stating, “I will not take less than $60,000 for the forty-acre tract as specified.” Ball immediately sends Sullivan a fax stating, “I accept your offer for $60,000 for the forty-acre tract as specified.” Discuss whether Ball can hold Sullivan to a contract for sale of the land.

Please use works cited.

## Do you agree with the given statement why or why notDo you agree with this statement? Why or why not? Do you think that a proper country risk analysis can replace a capital budgeting analysis of a project considered for a foreign country? Explain. |

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## Target capital structure of common stockMullineaux Corporation has a target capital structure of 62 percent common stock, 7 percent preferred stock, and 31 percent debt. Its cost of equity is 12.7 percent, the cost of preferred stock is 5.7 percent, and the cost of debt is 7.4 percent. The.. |

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## What are the zero-coupon rates implied by these bondsAssume that there are two three-year bonds with face values equaling $1000. The coupon rate of bond A is .05 and .08 for bond B. A third bond C also exists, with a maturity of two years. Bond C has a face value of $1000; it has a coupon rate of 11%. .. |

## Compute arithmetic mean rate of return-standard deviationThe following are annual rates of return for U.S. government T-bills and U.K. common stocks. Year U.S Government T-Bills U.K Government Common Stock 2003 0.063 0.150 2004 0.081 0.043 2005 0.071 0.374 2006 0.090 0.192 2007 0.085 0.106. Compute the ari.. |

## Mainframe and an internet based data storage systemGarner Financials is considering a new piece of equipment, mainframe and an internet based data storage system, Calculate the IRR and the NPV for each project. |

## Straight-line depreciation to zero over the five-year lifeConsider a five-year project with the following information: initial fixed asset investment = $500,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $35 per unit; variable costs = $20 per unit; fixed costs =.. |

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