Answer:
Bilateral Contract
Explanation:
A bilateral contract is an agreement between two parties in which each side agrees to fulfill his or her side of the bargain.
The bilateral contract is the most common kind of binding agreement. Each party is both an obligor (a person who is bound to another) to its own promise, and an obligee (a person to whom another is obligated or bound) on the other party's promise. A contract is signed so that the agreement is clear and legally enforceable.
In this case Windsor promises to pay $375 and Gary promises to deliver 20 pounds of cheese.
Answer:
A royalty is a fee that the franchisee has to pay the franchiser for trading under its name.
Explanation:
A franchise operation is when one party (franchiser) allows another party (franchisee) access to it’s proprietary knowledge, trademark and processes in order to allow the party to sell a product or provide a service under the business’s name. A common example of a franchise operation are KFC outlets across the globe.
A royalty fee is a fee that the franchisee has to pay the franchiser on a common basis such as quarterly or annually for trading under its name. It is generally calculated as a percentage of gross sales. In this case the royalty fee would be 5% of gross sales.
Answer:
C.eight-year bond with 5.5% annual interest rate
Explanation:
The computation of the total options under each option is as follows:
As we assume the par value be $1,000
For Option A
Total interest
= 9.5% × $1,000 × 3 years
= $285
For Option B
Total interest is
= 7.25% × $1,000 × 4 years
= $290
For Option C
Total interest is
= 5.5% × $1,000 × 8 years
= $440
For Option D
Total interest is
= 6% × $1,000 × 6 years
= $360
As we can see that the option C contains high value of the total interest. So the same is to be selected
Answer:
Beta of a security is the covariance of the security return with the return on the market portfolio divided by variance of the market return.
The correct answer is C
Explanation:
Beta of a security is calculated as covariance (Ri,Rm) divided by Variance of the market return. Beta is used for measuring the systematic risk of a security.
Answer:
$505
Explanation:
Armstrong Company
Cash flow from operating activities
Adjustments to reconcile net income to operating cash flow.
Net income
$450
Less : Increase in plant and equipment
($170)
Add : Depreciation expenses
$80
Add : Payment of dividends
$10
Add : Decrease in accounts receivable
$20
Add : Increase in long term debt
$100
Less : Increase in Inventories
($15)
Add : Decrease in Account payable $30
Net Cash flow from operating activities
$505
