Answer: a. $14.9
b. $3725
Explanation:
a. What is the offer price?
This will be calculated as:
= NAV / (1 - load charge %)
= 13.85 / (1 - 7%)
= 13.85 / (1 - 0.07)
= 13.85 / (0.93)
= $14.9
B. What did Lee pay for his investment?
This will be:
= Number of shares bought × Offer price
= 250 × $14.9
= $3725
Answer:
No gain or loss.
Explanation:
Given:
Amount of spice mixture = 470 pound
Current price = $2.35 per pound
Future price = $2.73 per pound
Computation:
We know that, Future price of spice mixture is higher than current price of spices.
But contract price is fixed at $2.35.
Therefore, no gain or loss will be recognized.
Answer:
22.85
Explanation:
Present value (PV): $500,000
Rate: 6.5% per annual
Payment (PMT) : $40,000 per year
We can use excel to calculate the maximum number of whole payments that can be withdrawn before the account is exhausted
=NPER(rate, PMT, -PV,,1) = NPER (6.5%,40000,-500000,,1) = 22.85
Answer:
d.economic duress
Explanation:
The economic duress in simple terms means a party who is entering into a contract frightens or threatens of cancelling the contract or does not act according to the terms of the contract unless the other party in the contract agrees to their demands.
In the context, the conduct of Roger against Karl is probably can be called as the 'economic duress' as Roger informs Karl before the deadline of filing the response that he will not represent himself against IRS unless Karl enters into a deal of an expensive retainer agreement. Thus it is an economic duress that Roger is showing and forcing Karl to agree on his demands.
1. Direct
2. Indirect
I think this is correct.
