Answer: contingency
Explanation:
Contingency planning is a form of planning that is used by an organization in order to plan ahead in case an event occurs. Contingency plans can also be called a 'Plan B' due to the fact that it's an alternative action in case things does not go as planned.
Therefore, based on the question, Pinnacle is practicing contingency planning.
Answer: $400.56
Explanation:
Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)
Tax shield in year 3 = Interest expense * tax rate
= 140 * 25%
= $35
Horizon value = 35 * ( 1 + 3%) / (12% - 3%)
= $400.56
So that you can make the makup look correct and not to synthetic and ugly
Answer:
1. Could C.B. Management, Inc., prevail on its claim?
- probably it could since it was a common practice for McDonald's
2. C.B. Management, Inc. would be more likely to prevail if it could show that McDonald's terminated the franchise.
- arbitrarily, since it accepted other late payments from other franchisees.
Explanation:
In the original question, C.B. Management had a franchise contract with McDonald's but it continuously paid their franchise fees late. At the beginning McDonld's accepted the late fees but then it decided it wouldn't accept them anymore. Since late fees represented a breach of the franchise contract, McDonald's decided to terminate its contract with C.B. Management. In the first scenario, McDonald's was entitled to terminate the contract due to C.B. Management's continuous breaches.
What changes here, is that McDonald's generally accepts late payments from other franchisees and there acceptance of prior late fees meant that the original contract clause was invalid.
Answer:
b. revenues minus accounting and opportunity costs.
Explanation:
A normal profit occurs when the amount of profit generated by a company in a given period is equal to the amount of its costs, that is, in this situation the company's profit is sufficient to cover its costs and it manages to continue operating in a market in a way competitive, for this reason the normal profit
The opportunity cost refers to normal profit due to the fact that this is the amount that is equal to zero with respect to economic profit, which is what is necessary for the company to operate when considering the investment made.
