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kramer
3 years ago
8

Nathan buys a new microwave for $200. The microwave’s label bears a disclaimer that the manufacturer is not liable for consequen

tial damages. A week later, while Nathan is baking cookies, the oven emits sparks and damages the electrical wiring in the kitchen. An electrician comes and informs Nathan that the oven malfunctioned and that the cost of repairs in his kitchen will cost $2,000. What can Nathan recover from the oven manufacturer? a. $2,500 b. $1,800 c. $200 d. No damages can be recovered.
Business
1 answer:
Rainbow [258]3 years ago
5 0

Answer:

Option (c) $200

Explanation:

Data provided in the question:

Cost of the microwave = $200

Cost of repairs in the kitchen = $2,000

Now,

The damage caused in the kitchen is due to the malfunctioning of the microwave.

But the disclaimer on the microwave’s label already mentioned that the manufacturer is not liable for consequential damages.

here,

The damage in the kitchen is consequential damage to microwaves.

Hence,

the manufacturer of the oven will only give $200

Option (c) $200

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Edgar owns 234 shares of Cawh Consolidated Bank, which he bought for $21.38 apiece. Each share pays a yearly dividend of $3.15.
Nataliya [291]

Answer:

The stocks yields 14.73% per year

the bonds yields 7.89% per year

The stock provide a better yield, which is 6.84% greater than bonds yield

Explanation:

the return will be calculate as follow:

return/ investment cost

<u>stocks</u>

return 3.15 dividends

cost 21.38 each stock

yield:

3.15 / 21.38 = 0,14733395 = 14.73%

<u></u>

<u>bonds</u>

return: cuopon payment 1,000 x 8.3% = 83

cost : market value 1,000 x 105.166/100 = 1,051.66‬

yield:

83/1051.66 = 0,07892284 = 7.89%

<em>Difference:</em>

stocks 14.73 - bonds 7.89 = 6.84

5 0
4 years ago
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Halestorm Corporation’s common stock has a beta of 1.13. Assume the risk-free rate is 4.8 percent and the expected return on the
nadezda [96]

Answer:

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Explanation:

Using Capital Asset Pricing Model we have,

Cost of equity = Risk free return + Beta (Market return - Risk free return)

Provided risk free rate of return = 4.8%

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Therefore cost of equity = 4.8% + 1.13 (12.3 - 4.8)

= 4.8% + 8.475%

Therefore, Halestorm Corporation's cost of equity

= 13.275%

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3 years ago
An asset which costs $97,600 and has accumulated depreciation of $82,000 is sold for $18,000. what amount of gain or loss will b
frutty [35]
Book value
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So
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Hope it helps
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Explanation:

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