Fuel Connector Products, Inc, agrees to sell Go-Flo, Inc, a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is
A) Fuel Connector's place of business
B) Go-Flo's place of business.
C) the current location of the hose couplings and fittings.
D) the U.S. Postal Service office nearest to Go-Flo's place of business.
A
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__________ means that managers must report and justify work results to managers above them.
A. Liability B. Accountability C. Delegation D. Hierarchical control E. Position power
Exploratory research is used in all of the following cases EXCEPT:
A) selecting the course of action to take in a given situation. B) when you must define the problem more precisely. C) when you must identify relevant causes of action. D) when you must gain additional insights before an approach can be developed.
A stereotype is defined as:
a. A preconceived judgment or opinion held by members of a group b. A standardized, oversimplified mental picture that is held in common by members of a group c. A preconceived opinion, not based on reason or experience d. A statement of being subject to specific treatment or control
The Naugatuck Railway is currently all equity financed, but it is considering a leveraged capital structure. Selected financial information for Naugatuck is provided in the table below
Assume that all cash flows occur at the end of the year and we are currently at the beginning of a year. Assume that taxes are zero. Assume that all of net income is paid out as a dividend. Assume that the debt is perpetual with an annual coupon rate of 4% (and yield of 4%). Assume that individual investors can borrow and lend at the same interest rate (and with the same terms) as corporations. Under the proposed levered capital structure, Naugatuck will use all of the new debt to repurchase (and cancel) shares. Bill Strong, a brakeman for the railway, bought 100 shares of Naugatuck at $40. Bill receives annual dividend income of $200 under the current capital structure. Bill likes the return on investment that he could earn under the proposed levered capital structure, but Naugatuck has announced that it will not go forward with the change in capital structure. If Bill borrows $2,400 and buys shares, then what are his annual investment cash flows? Capital Structure Capital Structure All Equity Levered EBIT $200,000 $200,000 Debt, D 0 $1,500,000 Cost of Debt, kd N/A 4% Shares Outstanding 100,000 62,500 Stock Price $40.00 $40.00 Earnings per share $2.00 Dividend per share $2.00 A) $200 B) $224 C) $245 D) $267 E) $320