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2 years ago

What rules should brokers follow to decrease the possibility of lawsuits?

Business

1 answer:

Masteriza [31]2 years ago

8 0

Answer:

Property inspection rules

Explanation:

Property inspection rules ensure that routine inspection is carried out on a property to ensure it is well cared for.

When a buyer of real estate makes a purchase and realises that the property has defects that were not disclosed initially, he can sir the seller and the broker.

To avoid this the broker should ensure that property inspection rules are followed.

The tenant should also be aware of the inspection and have access to the result. This will give him adequate knowledge of the defects of the property prior to purchase.

With this fore knowledge it is less likely the buyer will sue for undisclosed defects.

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Upton Umbrellas has a cost of equity of 11.6 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 perc

matrenka [14]

Answer:

WACC = 9.86%

so correct option is d. 9.86%

Explanation:

given data

cost of equity = 11.6 percent

bonds = 6.2 percent

bonds sell = 103.2 percent

debt book value = $408,000

total assets book value= $952,000

market to book ratio = 2.74 times

to find out

what is the company's WACC

solution

we get here first Total book value of equity that is express as

Total book value of equity = Total assets book value - Total debt book value .................1

Total book value of equity = 952000 - 408000

Total book value of equity = $544000

and here market to book ratio is

market to book ratio = $\frac{market\ value}{book\ value}$

so market value of equity = (2.74 × 544000) = $1490560

and

After tax cost of debt = 6.2 (1 - tax rate)

After tax cost of debt = 6.2 (1 - 0.4)

After tax cost of debt = 3.72%

and

Market value of Debt = 408000 × 103.2%

Market value of Debt = $421056

Total market value = $1490560 + $421056

Total market value is =$1911616

and

WACC will be

WACC = Respective costs × Respective weights

WACC = $\frac{1490560}{1911616}11.6 + 3.72\frac{421056}{1911616}$

WACC = 9.86%

so correct option is d. 9.86%

4 0

2 years ago

Which of the following people is considered to be in the labor force? Select all that apply: Gina is a stay-at-home mom and volu

Fudgin [204]

Answer:3

Explanation:

niot sure

4 0

2 years ago

Maria Mendez is division controller and James Dalton is division manager of the Hestor Shoe Company. Mendez has line responsibil

myrzilka [38]

A) Mendez's ethical responsibilities are,

1)Competence

2)Confidentiality

3)Integrity

4)Credibility

B)The responsibilities of mendez if dalton gives her a direct order to book the sales are explained below.

Explanation:

Integrity

Cometence

Credibility

IMA is highly regarded organization for accountants and finance professionals. The following four standard to which the organization holds CMA's accountable are

1)Competence

2)Confidentiality

3)Integrity

4)Credibility

Mendez should refuse to follow dalton's orders and if dalton persists, the incident should be reported to the corporate controller of hester shoe company. Support for the linc managers should be wholehearted, but it should not require unethical conduct.

8 0

2 years ago

On October 1, Year 1, Jason Company paid $7,200 to lease office space for one year beginning immediately. What is the amount of

victus00 [196]

Answer:

The amount of rent expense that will be reported on the Year 1 income statement is $1,800 .

The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $5,400.

Explanation:

Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.

The duration of the payment is 12 months, hence

Monthly amortization = $7,200/12 = $600

Rent expense for year 1 = $600 × 3 = $1,800

The ending balance in the prepaid rent account will be

= $7,200 - $1,800

= $5,400

This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.

6 0

1 year ago

Gomez runs a small pottery firm. He hires one helper at $13,000 per year, pays annual rent of $5,500 for his shop, and spends $2

alisha [4.7K]

Answer:

(a) $35,000

(b) $8,000

Explanation:

(a) Accounting profit:

= Total revenue - Explicit cost

= $75,000 - (wages + Annual rent + Material cost)

= $75,000 - ($13,000 + $5,500 + $21,500)

= $75,000 - $40,000

= $35,000

(b) Economic Profit:

= Total revenue - Explicit costs - Implicit costs

= $75,000 - (wages + Annual rent + Material cost) - (Income from investment + Earnings as a potter + Worth of entrepreneurial talents)

= $75,000 - ($13,000 + $5,500 + $21,500) - ($5,500 + $19,000 + $2,500)

= $75,000 - $40,000 - $27,000

= $8,000

8 0

2 years ago