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storchak [24]
2 years ago
11

Chuck Olson, age 16, buys a used car from Bobby Duncan Used Cars Center on September 15, 2006. Olson agrees to pay $200 a month

for 12 months. A month after the purchase, Olson is involved in an accident that wrecks the car. He immediately calls Duncan Cars and informs them that he is disaffirming the contract. According to traditional common laws, which of the following is most likely to be true?
a. Olson does not have a duty to place Duncan in status quo ante
b. Olson can ask Duncan to pay for the damages as he hasn't made the full payment for the car.
c. Olson has to pay for the damages and then return the car to Duncan.
d. Olson can successfully press charges and force Duncan to take care of the damages caused to the car.
Business
1 answer:
lukranit [14]2 years ago
8 0

Answer:

Olson can successfully press charges and force Duncan to take care of the damages caused to the car ( D )

Explanation:

Chuck Olson age 16 ( a minor ) can successfully press charges and request/force Bobby Duncan used cars center to take care of the damages caused to the car. this is because according to traditional common laws a contract entered by a minor is considered null and void hence Olson can successfully disaffirm the contract and Bobby Duncan would have to accept the damages and take care of them.

A minor is not required by traditional common law to entered into any form of obligatory contract.

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Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10
Alborosie

Answer:

d. $34.87

Explanation:

We need to calcualte the value of the company. This is done by addingthe present vbalue of the future free cash flow of the firm.

FCF0 = 1.32 (current accounting period)

FCF 1.32 + 30% = 1.716

FCF2 FCF1 + 10% = 1.716 x 1.1 = 1.8876‬

FCF3 FCF + 5% = 1.8876 x 1.05 =  1.98198‬

From here after we use the gordon model:

\frac{divends}{return-growth} = Intrinsic \: Value

WACC = 9%

grow = 5%

we use FCF instead of dividends: 1.98198

\frac{1.98198}{0.09-0.05} = Intrinsic \: Value

Value of the future cash flow 49,5495

Now, as this are in the future we must adjust using the present value of a lump sum:

\frac{1.716}{(1 + 0.09)^{1} } = PV  

PV   1.5743

\frac{1.8876}{(1 + 0.09)^{2} } = PV  

PV   1.5888

\frac{49.5495}{(1 + 0.09)^{2} } = PV  

PV   41.7048

Total: 1.5743 + 1.5888 + 41.7048 = 44,8679‬

Now we adjust for shrot term investment and debt outstanding:

vresent value of the future cash flow 44,8679‬

short term investment:                          4.0000

debt outstanding                                <u>   (14.000)  </u>

Net:                                                        34.8679

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Answer:

The answer is below

Explanation:

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Since the price elasticity of demand is greater than 1 hence it is elastic

ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.

iii)

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