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natita [175]
3 years ago
12

A buyer and seller have entered into a contract for sale of a duplex. the buter defaults on the contract and the seller claims t

he escrow deposit per contractual agreement. What term applies to this situation?
Business
1 answer:
Lerok [7]3 years ago
8 0

Answer:

The answer is: Earnest money deposit (EMD)

Explanation:

An EMD or a good faith deposit is done in a real estate operation. Usually when the buyer doesn´t have all the money to buy the property they make a EMD when signing a sales contract. The EMD gives the buyer some time to get a loan, conduct the title search, a property appraisal and all the inspections necessary before closing the deal. The buyer gets his money back in case something goes wrong with the sell that isn´t his responsibility, i.e. the house has severe damage that was unnoticed until a further inspection was made. But when the sell isn´t carried out due to issues with the buyer, i.e. he couldn´t get his loan approved in time, then the buyer gets to keep the EMD. The contingencies must be stipulated in the contract, ether in favor of the buyer or the seller to establish in which cases a party can claim the EMD.

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A spurious relationship occurs between two variables when:
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3 years ago
A firm's cost of equity is 22%. Its before-tax cost of debt is 13% and its marginal tax rate is 21%. The firm's capital structur
alisha [4.7K]

Answer:

WACC= 17.95%

Explanation:

Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund.

It is calculated using the formula below:

WACC = (We×Ke)  +  (Wd×Kd)

Ke-cost of equity- 22%

We- equity weight- 100% - 45% = 55%

Kd-After tax cost of debt-10.3%

Wd- 45%

After tax cost of debt = Before tax ×× (1- tax rate)

After tax cost of debt = 13%× (1-0.21) = 10.3%

Cost of equity = 22%

WACC =(0.55× 22%) + (0.45× 13%)=17.95%

WACC= 17.95%

4 0
3 years ago
Warren and shirley want to avoid having a balance due next year. which of the following can they do
Vinil7 [7]
Warren can submit Form W-4V to have taxes withheld from his Social Security is <span>Warren and shirley want to avoid having a balance due next year. 

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3 0
2 years ago
The actual and standardized budgets will be equal when: 
A. The rate of inflation is zero
B. The economy is at full employment
C
alexira [117]

Answer:

The correct answer to the following question is B) the economy is at full employment.

Explanation:

Standardized budget which is also know as full employment budget , is used to measure the federal budget deficit or surplus , with the given tax rates and government spending. Here the assumption made is that the economy has full employment, and this is one of the major difference between standardized and actual budget . Also standardized budget would reflect any type of adjustment that has to be made in the actual budget. So therefore the only way that actual budget and standardized budget are equal is when they both have full employment present in the economy.

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3 years ago
Madison wants to open a restaurant and plans to employ a staff of about 10 people, including wait staff and cooks. what type of
Arada [10]
The fact that Madison wants to open a restaurant and plans to employ a staff of about 10 people, including wait staff and cooks means that Madison is planning to create a flat type of organization. The units and positions within the flat organization are flat distributed, which means there are <span>few or no levels of middle management between staff and executives.</span>
8 0
3 years ago
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