A franchise agreement between Software2 Company and Games3, Inc., is silent on a time for termination of the franchise. Software2 may
A. never terminate.
B. terminate at any time.
C. terminate on reasonable notice.
D. terminate on three days notice.
Answer: C
You might also like to view...
A static simulation model represents the system over a period of time
a. True b. False
The ________ role (as Mintzberg defined it) is more important for lower-level managers than it is for either middle- or top-level managers.
A. leader B. figurehead C. negotiator D. disseminator
Which one of the following statements is TRUE?
A. One tool of corporate governance is the threat of removing current management. B. The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost. C. One tool of corporate governance is the choice of how much dividends to pay. D. Corporate governance is when an officer of a corporation is elected to public office. E. One tool of corporate governance is the location of the company headquarters.
NorthWest Water (NWW) Five years ago, NorthWest Water (NWW) issued $50,000,000 face value of 30-year bonds carrying a 14% (annual payment) coupon. NWW is now considering refunding these bonds. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NWW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. Refer to the data for NorthWest Water (NWW). What is the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding?
A. $5,049,939 B. $5,315,725 C. $5,595,500 D. $5,890,000 E. $6,200,000