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frutty [35]
3 years ago
7

Rudy and his publisher require Katherine's expertise in writing a chapter of a book that will be published under Rudy's name. Th

ey sign a contract in which Katherine agrees to write the chapter. If Katherine then delegates her obligation to write the chapter to Dana, the delegation:
a. will probably not be effective, because the duty involved personal services.
b. will probably be effective even though the duty involved personal services.
c. is not a delegation at all; it is an assignment.
d. will be allowed based on the doctrine of alienation.
Business
1 answer:
Setler [38]3 years ago
3 0

Answer:

The correct answer is A

Explanation:

Delegation is the term in accounting which is defined as the assignment of authority to some another person in order to carry out the particular activities. And the person or individual who delegate the work will remain accountable or responsible for the outcome or result of the work which is delegated.

So, in this case, Ruby need expertise of Katherine in writing a chapter and they signed a contract for the same but if Katherine delegates the work to Dana, then the delegation would not so effective as the duty involve the personal services.

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PAW Industries has 5 million shares of common stock outstanding with a market price of $8.00 per share. The company also has out
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Answer:

A. 10.14%

Explanation:

1.Market value of PAW common stock:5,000,000*8=$40,000,000

2.Market value of PAW outstanding preferred stock=$10,000,000

3.Market value of PAW bonds outstanding=96,000,000(100,000*1000*96%)

Total Market value(1+2+3)=146,000,000

4.Cost of equity amount on common stock(19%*40,000,000)=7,600,000

5.Cost of preferred stock amount (15%*10,000,000)=$1,500,000

6.After tax cost of Debt amount(9%*66%*96,000,000)=$5,702,400

Total cost amount(4+5+6)=14,802,400

The WACC can be calcualted as: Total cost amount/Total market value

                                                        14,802,400/146,000,000=10.14%

The answer should be A. 10.14%

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