Known risks cannot be allocated in a contract.
Answer the following statement true (T) or false (F)
False
Risks can be allocated in a contract by the contracting. For that reason, impossibility must be an unexpected occurrence.
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What is the basis for calculating a budget allocation in the percentage-of-sales method?
What will be an ideal response?
Pamela owns land for investment purposes. The land is worth $300,000 (basis of $260,000 to Pamela). Pamela exchanges the land, plus $20,000 cash, for a warehouse to be used in her business. The FMV of the warehouse is $400,000, but the warehouse is subject to a mortgage of $80,000, which is assumed by Pamela. Pamela must recognize a gain of
A) $0. B) $40,000. C) $120,000. D) $140,000.
Suppose the domestic cost of capital for a U.S.-based company is 8%. Also, the U.S. interest rate is 4% and the European interest rate is 7%. What is the foreign denominated cost of capital for the company?
A) 9.58% B) 11.12% C) 10.51% D) 10.98%
A continuous random variable is ________
A) a variable for which the number of possible outcomes can be counted B) a variable that has outcomes over one or more intervals of real numbers C) a characterization of the possible values that a random variable may assume along with the probability of each value D) a variable for which there is only one possible value