Answer:
B. The distribution will be a dividend if current earnings and profits are positive and exceed the distribution.
Answer: The net effect of additional debt on WACC is uncertain.
Explanation:
Weighted Average Cost of Capital (WACC) refers to the rate of return that a company is paying it's capital providers on average be it debt holders or shareholders.
Adding additional debt to the mix effects the WACC in an uncertain way due to the different ways the WACC could react. For example, adding additional debt decreases the after-tax cost of debt because debt is tax deductible which means that more money can flow to shareholders so that reduces the cost of equity. At the same time however, Additional debt can increase the risk of bankruptcy meaning that the before tax cost of debt rises which also increase the WACC.
The effect can swing either way thereby making it uncertain.
Sclafani is a disclosed principal
<u>Principals are liable for contracts made by an agent when that contract was authorized by the principal.
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Explanation:
1) Who was the principal?
Sclafani is a disclosed principal
<u>Principals are liable for contracts made by an agent when that contract was authorized by the principal.
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2) Who is the agent?
<u>The office worker
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3) Who is the third party?
<u>When a third party, in this case Felix, enters into a contract with a disclosed principal, in this case Sclafani, who is liable on the contract the principal alone
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In this case Felix alleged that Sclafani authorized the officer worker to sign and fax the credit application back to Felix.
Felix likely alleged that in the event Sclafani did not give actual authority to the officer worker, the officer worker had apparent authority to contract with Felix.
Apparent authority is established when the principal leads a reasonably prudent person to justifiably believe that an agent has authority to act.
Explanation:
All good!! What about you.. friend?
