Ted and Alice own their recreational vehicle subject to a security agreement to Third U.S. Bank to secure the repayment of the purchase money loan. Ted and Alice sell their RV to Bob and Carol, who agree to take over the loan payments to the bank. There is no novation with the bank. Under these facts, if Bob and Carol do not make the loan payments, Third U.S. Bank
A. can sue Bob and Carol only.
B. can sue Ted and Alice only.
C. can sue Bob, Carol, Ted, and Alice.
D. cannot sue anyone but can repossess the RV.
Answer: C
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When drawing up a daily "to do" list, a salesperson should most likely:
A) refer to the previous day's log for unaccomplished activities B) avoid listing more than five items for one day C) record more tasks than can be completed D) list activities in priority order E) rank items alphabetically
The following market information was gathered for the ACME corporation. The common stock is selling for $40.00 per share and there are 100,000 shares outstanding
Retained earnings equal $400,000, preferred stock has 1,000 shares outstanding selling at $120.00 per share, and 500 outstanding long-term bonds are selling for $1,035.00 each. For purposes of estimating the firm's WACC, what are the market value weights of long-term debt, preferred stock, and equity? A) D/V = 11.16%, PS/V = 2.59%, and E/V = 86.25% B) D/V = 10.27%, PS/V = 2.38%, and E/V = 87.34% C) D/V = 10.78%, PS/V = 3.08%, and E/V = 86.14% D) D/V = 33.33%, PS/V = 33.33%, and E/V = 33.33%
Swiss imports can acquire a $700,000 machine now that will benefit the firm over the next 5 years. A newly hired staff assistant correctly computed the net present value to be $134,020 by using a 10% hurdle rate.FV of 1 (i=10%, n=5):1.611FV of a series of $1 cash flows (i=10%, n=5):6.105 PV of $1 (i=10%; n = 5): 0.621PV of a series of $1 cash flows (i=10%, n=5):3.791 On the basis of this information, the machine was expected to produce annual cash operating savings of approximately:
A. $834,020. B. $166,804. C. $268,605. D. $220,000. E. None of the answers is correct.
"...nor shall private property be taken for public use, without just compensation." is part of:
a. the Third Amendment of the U.S. Constitution b. the Fourth Amendment of the U.S. Constitution c. the Seventh Amendment of the U.S. Constitution d. the Sixth Amendment of the U.S. Constitution e. none of the other choices are correct