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inna [77]
2 years ago
9

Frank Dewey Esquire from the firm of Dewey, Cheatum, and Howe, has been offered an upfront retainer of $30,000 to provide legal

services over the next 12 months to Taggart Transcontinental. In return for this upfront payment, Taggart Transcontinental would have access to 8 hours of legal services from Frank for each of the next 12 months. Frank's normal billable rate is $250 per hour for legal services. Assuming that Dewey's cost of capital is 12% EAR, then the IRR of his retainer offer is closest to:
Business
1 answer:
Murrr4er [49]2 years ago
4 0

Answer:

-39.3%

Explanation:

Calculation for the IRR of his retainer offer

First step is to find Opportunity Cost

Opportunity Cost= 8 hours × $250 per hour

Opportunity Cost = $2,000

Since we have known the monthly Opportunity Cost the second step will be to compute IRR

Present Value= $30,000

N = 12

PMT = -2,000

FV = 0

Now let compute the IRR

IRR= -3.276502% × 12

IRR= -39.3180% Approximately - 39.3%

Therefore the IRR of his retainer offer is closest to: - 39.3%

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Answer:

  graph C

Explanation:

Daniel has chosen the distance to be his explanatory variable, so that is the one that should be plotted on the x-axis. Distance has a range from 4.5 to 18, so a scale from 0 to 20 works better than a scale from 0 to 60.

Graph C is the one that matches this description.

5 0
2 years ago
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Enterprises face the challenge of deciding which investments to make and how to allocate scarce resources to competing projects.
Tema [17]

Answer: Business case

Explanation: In other to eliminate the dilemma posed by having to allocate resources particularly in those which are not readily available in abundance or having to choose between two or more different options, tasks or projects, managers are often faced with a decision dilemma which are is usually analysed by making a business case in other to identify the modalities attached with each project or task on the basis of risk, benefit attached, cost, timing of such projects and so on. This will enable managers to arrive at a reasonable justification to choose an option over the other which will yield a longterm return or benefit to the organization.

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2 years ago
Bernie Madoff invites you to invest $1,000 in his fund now and be guaranteed at least $1,500 in 4 years. What is the effective r
Nady [450]

Answer: 10.67%

Explanation:

Mr Madoff is offering to grow the current value of $1,000 to a future value of $1,500 in 4 years.

This is a future value problem.

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( 1 + interest) ^ 4 = 1,500/1,000

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8 0
2 years ago
Does PepsiCo’s portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCo’s six segments? Wh
Snowcat [4.5K]

Answer:

Yes, PepsiCo’s portfolio exhibit good resource fit.

The cash flow characteristics of PepsiCo's six segments are

  • Ability to scout for future acquisitions.
  • Good credits and return on Investment.
  • Reinvestment in the development of business
  • Ability to pay off expenses
  • Ability to provide a buffer against future financial challenges
  • Good sales in and out of season,

The strongest contributors to PepsiCo is:

Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA)

Frito-Lay ratings is good in that it accounts for 29% of PepsiCo's total revenue as at Septemeber 2019  report.

8 0
2 years ago
Knowing that a third party may use the information that Ray is providing, does Ray owe a duty of confidentiality to Onyx?
artcher [175]

Answer:

<em>B. Yes, although it may be breached in most states if there is a court order to do so.</em>

Explanation:

<em>Duty of confidentiality is a provision that has been put in place in most states, to enable clients open up freely if they need help. This allows professionals to take whatever actions necessary to carry out full service delivery when helping the client. </em>Some of these details include health status, a client-lawyer case story, a social media's access to users' personal details, etc. The law prohibits professionals from disclosing information made available to them by the client to a third party. This duty is held by many professional bodies like the medical body, legal body, among others. <em>This duty can be broken by law in situations where the client sues the professional, or when there is a legal court order to do so</em>.

3 0
2 years ago
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