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You enter an expensive restaurant and are seated by the hostess. A waiter brings you plates, knives, forks, napkins, and other set-ups for dinner, including bread and butter and ice water, all of which you partly consume. When you read the menu, you realize that the prices far exceed what you can afford. You then make it clear that you do not intend to order a meal. What type of contract (obligation) do you have, if any? What factors and contractual elements will you consider in assessing whether a contract was formed?
What if, instead, you read the menu and place an order, but say nothing about agreement to pay. Is there a contract? Also, assume there is fine print at the bottom of the menu that states: 20% gratuity charged. $20.00 cover charge per table. If you ordered dinner but didn't see the fine print, what is the effect? Does this change in the facts alter your conclusion regarding the scenario above? Why or why not? What key factors and elements are at play?
Marcy placed $2,300 a year into an investment returning 9 percent a year for her daughter's college education. She started when her daughter was 5. How much did she accumulate by her daughters 18th birthday?
Other things held constant, which of the following would lead to a decrease in working capital?
A firm with a cost of capital of 13.5% has a contract to sell an asset for $230,000 in five years. The asset costs $111,000 to produce today (at t = 0). Find out the maximum annual carrying cost that the firm can bear and still make this an advisab..
Computation of book value per share and equity account for Bridgford foods in fiscal year ending
Select an apparel company planning another facility: Discuss interest rates to begin today or in six months using TVM. How is the time value of money important to the company?
Your firm has an average collection period of 23 days. Current practice is to factor all receivables immediately at a 1.30 percent discount. What is the effective cost of borrowing in this case?
Determine the current market prices of the following $1,000 bonds if comparable raste is 10% and answer the following questions.
Therefore, the company attempted to move the suit from the federal court to a state court, arguing that the federal court had absolutely no jurisdiction over the case. Which court has jurisdiction? Support your answer.
Computation of value of share and What is the value of a share of Gamma Corporation common stock to an investor who requires a 20% return on an investment
Blackstone Corporation's $7 preferred was issued five years ago. The risk-appropriate interest rate for the issue is currently 11%. What is this preferred stock selling for today?
Given the following cash flow pattern, how much would you be willing to pay to purchase it? Assume an 8% APR discount rate.
Compare and contrast the uses of break-even analysis and sensitivity analysis in evaluating project risk.
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