Reference no: EM131315770
Gus Vincent sent invitations to a number of potential buyers to submit bids for the mineral rights to his 2,000-acre parcel in upstate New York on the outskirts of the City of Hudson. Seven bids were received, including the highest bid from International Mining and Cement Company, LTD. (IMC). Vincent then decided to hold onto the land for a few more years and never responded to any of the bidders. IMC claimed that a contract had been formed by submission of its winning bid and sued Vincent for breach of contract. Did a contract exist?
Increase in the foreign interest
: For a $1.50/£ call option with an initial premium of $0.033/£ and a phi value of –0.2, after an increase in the foreign interest (the pound sterling rate) rate from 8 percent to 9 percent, the new option premium would be A $0.035/£ B $1.48/£ C $0.031..
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Amortization of bond premium on the straight-line method
: January 1, 2011, Gonzalez Corporation issued $44,511 10% 14-year bonds at 103. Gonzalez has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method).
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Inflation is expected to decline steadily in the future
: Assume that inflation is expected to decline steadily in the future, but that the real risk-free rate, r*, will remain constant. Which of the following statements is CORRECT, other things held constant?
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Statement of retained earnings night scapes
: Statement of Retained Earnings Night Scapes, Corp. began the year 2008 with $14 million in retained earnings. The firm suffered a net loss of $2.4 million in 2008 and yet paid $2.04 million to its preferred stockholders and $1.04 million to its commo..
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Number of potential buyers to submit bids for mineral rights
: Gus Vincent sent invitations to a number of potential buyers to submit bids for the mineral rights to his 2,000-acre parcel in upstate New York on the outskirts of the City of Hudson. Seven bids were received, including the highest bid from Internati..
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Real risk-free rate-maturity risk premium is zero
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Ranges of the growth rates and the resulting dividends
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Company expects this equipment will lead to cash flows
: Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $816,322, $863,275, $937,250, $1,017,610, $1,212,960, and $1,225,000 over the next six years. If the appropriate disco..
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Indifferent between the annuity and cash now
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