Calculate the cost of capital of Grantz Inc. when the net and economic profits generated by the company are $180 million and $24 million, respectively, and the total invested capital is $940 million
A) 24.3%
B) 20.5%
C) 12.2%
D) 8.5%
E) 16.6%
E
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Spicy & Hot, Inc is interested in expanding its Mexican food restaurant into a Mexican food catering business. Spicy & Hot, Inc buys a new delivery van from Van World. Spicy & Hot, Inc is a buyer in the ordinary course of business when purchasing the van
a. True b. False Indicate whether the statement is true or false
Raymond Randall is an attorney with the Federal Trade Commission. A 19-year veteran with the agency, Mr. Randall was known as a good trial attorney. The FTC charged William Farley, the chairman of Fruit of the Loom, Inc, with violations of the reporting provisions of the Hart-Scott-Rodino Act, when he purchased shares of West Point-Pepperell Corporations prior to a Fruit of the Loom takeover bid
The Hart-Scott-Rodino Act requires investors to notify the government when their holdings in a firm pass $15 million. The FTC sought a fine of $10,000 per day against Mr. Farley, for a total of $910,000 . Mr. Farley did notify the FTC once Fruit of the Loom made its decision to acquire West Point-Pepperell. Randall was assigned the Farley case. The FTC took a position of refusing to disclose to Farley and his attorneys documents relating to the case. Mr. Randall felt that the documents pointed to weaknesses in the FTC case and supported Mr. Farley's point that he notified the FTC once the takeover position was announced. Mr. Randall leaked the documents to Mr. Farley's lawyer. Mr. Farley's lawyers were concerned that they should not be in possession of government documents returned the documents and resigned from the case because they had seen the documents. Mr. Farley's new attorneys went to court demanding production of the documents. The documents were ordered produced by the court. When the FTC refused to produce them, the case against Mr. Farley was dismissed by a federal district judge. a. Did Mr. Randall do the right thing in disclosing the documents to Farley's attorneys? b. Did Mr. Farley's lawyers do the right thing in returning the documents to the FTC?
Which one of the following is an investment from which the payoff over time is derived from the performance of an underlying asset?
A) a common stock certificate B) a derivative security C) a corporate bond D) a mortgage bond
BT (American) is considering opening a factory in the Ukraine. The Ukraine political environment is a concern. To protect itself in case of nationalization by the Ukraine government, BT should:
a. seek a guarantee from the World Bank b. not be concerned; overseas investments are protected by the Export Administration Act c. not be concerned; overseas investments are protected by the Export Trading Company Act d. buy an "all risk" insurance policy to cover losses in case of nationalization of specified property e. demand a higher rate of return because projects with the Ukraine and Third World countries are inherently risky