Answer: D. The neighbor, because obtaining financing was a condition precedent.
Explanation:
Even though it wasn't listed in the written contract, there was the condition precedent that the contract would not be binding unless funding was obtained. Condition precedent is a condition that must happen for a contract to become enforceable.
Funding was not obtained so the contract cannot be enforced. The neighbor would therefore prevail so long as the owner admits that there was indeed a condition precedent.
I would say true because hiring more people would allow more production
Answer:
0.37%
Explanation:
Since the expected payout ratio and earning per share is given, so we compute the current dividend which is shown below:
= Earning per share × payout ratio
= $2.75 × 70%
= $1.925
Now the cost of retained earning would be
= Current year dividend ÷ price + Growth rate
= $1.925 ÷ $45 + 0.06
= 10.28%
And, the cost of new stock would be
= Current year dividend ÷ price × (1 - flotation cost) + Growth rate
= $1.925 ÷ $45 × (1 - 0.08) + 0.06
= 10.65%
So, the exceed cost would be
= 10.65% - 10.28%
= 0.37%
