Answer:
Courts Distributors and Eastinghouse Corporation
Dispute over Contract Price
The two parties have a legal contract. The contract was established when Courts requested Eastinghouse to send the refrigerators and bill later.
The exact price for the contract is in dispute. This dispute can be resolved between the parties. Reference to the market price will help resolve the dispute, otherwise, the parties may seek alternative dispute resolutions, like litigation, mediation, or arbitration.
Explanation:
a) Data and Analysis:
Eastinghouse's invoice price for the refrigerators = $140,000
Courts' adopted market price = $120,000
b) Since Courts' reference to the price is with regard to the wholesale market price, it may be that Eastinghouse quoted the retail price instead. Since Courts is a distributor, it has the right to be charged a wholesaler's price and not a retailer's. Therefore, we can conclude that after due reference to the prevailing market price of similar refrigerators, the two parties may agree to a price of $120,000 or a little higher.
Answer:
For this situation, Answer will be (A).
Enforceable as private law.
Explanation:
- Private Law: it is the branch of law in which the relationship between a person or an institution or a government explained.
- Enforceable law: Enforceable means able to be enforced. A right or province can be enforced if a individual who is bound by an act may be forced or ordered to execute with the law process. To put it another way, enforceable is an action that can be effective.
Answer:
3.28%
Explanation:
Current yield = Annual Coupon payment / Market price of the bond
Annual Coupon payment = 3.25% of face value = 3.25% * $100
= $3.25 "value is assumed at $100"
Market price of the bond = $99.04
Therefore
, Current yield = $3.25 / $99.04
= 0.03281
= 3.28%
Answer:
9.75%
4.2%
Explanation:
Given:
Stock index portfolio = 70% = 70/100 = 0.70
Risk free asset = 30% = 30/100 = 0.30
Return on the risk-free asset = 4.5% = 4.5/100 = 0.045
Return on the stock index = 12% = 12/100 = 0.12
Standard deviation (Return on the stock index) = 6% = 6/100 = 0.06
Computation of expected return on the portfolio:
Expected return = [Risk free asset × Return on the risk-free asset ] + [Stock index portfolio × Return on the stock index ]
= [0.3 × 4.5] + [0.7 × 12]
= [1.35 + 8.4]
= 9.75%
Computation of expected standard deviation of the portfolio:
Expected standard deviation = [Stock index portfolio × Standard deviation (Return on the stock index)]
= 0.7× 6
= 4.2%
