Answer:
The buyer can sue for specific performance of the contract. In real estate, in order for the buyer to be able to sue for specific performance, he/she must have all the money (or mortgage) ready to finish the transaction. It is very difficult for someone to sue for damages for not wanting to complete the sale of a house because houses are unique in a way that similar houses in different neighborhoods or even streets might be worth a lot more or less.
When you sue for specific performance, the non-breaching party will request that the other party performs their side of the contract.
Answer:
The correct answer is 8.23%.
Explanation:
According to the scenario, the computation can be done as:
WACC of debt = Respective costs of debt× Respective weight of debt
= (0.4 × 5)
= 2
WACC of preferred = Respective costs of preferred × Respective weight of preferred
= (0.15 × 7)
= 1.05
WACC of common equity = Respective costs of common equity × Respective weight of retained earning
= (0.45 × 11.5)
= 5.175
So, Total WACC = WACC of debt + WACC of preferred + WACC of common equity
= 2 + 1.05 + 5.175
= 8.225 or 8.23 (approx.)
Answer:
a. $0.98
b. 6,000 container
Explanation:
a. The computation of the incremental contribution margin per container is shown below:
= Drop selling price - total variable manufacturing cost - drop selling price × sales commission - sale value in raw form × basis
= $4.40 - $0.95 - $4.4 × 5% - 3 × 3 ÷ 4
= $0.98
b. The minimum number of containers of candy sold each month is
= (Per month salary paid to sales person + Master candy maker salary) ÷ ( incremental contribution margin per container)
= ($2,000 + $3,880) ÷ $0.98
= 6,000 container
We simply applied the above formulas so that the a and b part could arrive
Answer:
Net Sales for the month ended is equal to $9,702.
Explanation:
Sale = 100 x $100 = $10,000
Discount = $10,000 x 1% = $100
Sales Return = $198
Net Sales = Sales Price - Sales Discount - Sales Return
Net Sales = $10,000 - $100 - $198
Net Sales = $9,702
Net Sales for the month ended is equal to $9,702.
$20 is an expense and it is not an contra revenue account. So, it is not considered in net sales calculation.
Answer:
Please see below.
Explanation:
a.
• Reasonable compensation package. Every stockholders would usually want a good return on their investments. One of the techniques that can be used by them is to offer good and reasonable compensation packages to the company's highly performing executives and managers. The aim is to spur them to act in the best interest of the stockholders and not themselves. This will also translate to better performance of the company.
• Firing of managers who don't perform well. If a company's stock is not performing well(does not appreciate), such would usually be tied to its board and managers. Stockholders are the owners of a company because their funds are being used to trade hence can threaten to replace or actually replace any manager who is not performing well. By so doing, the managers that are retained will be motivated to perform really well in order to retain their jobs hence translate to better company performance.
• Threat of hostile take over. Stockholders could also threaten a company's board of being taken over by a proven and well accomplished company , if their stock price does not improve overtime. When the managers or board realize that their job is being threatened, they will be motivated to act fast by ensuring that the company's stocks yield adequate return in the long run.
b.
What should be paramount to managers is how to ensure that their company's intrinsic stocks value(an estimate of the true value of a stock, that is premised on well calculated risk) are well maximized. The stockholders should also be carried along while this process is on going. By maximizing their stock's intrinsic value, such would bring about high value to the stocks, while as time goes on, the actual stock price will be much closer to the intrinsic value of the stocks.
