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olchik [2.2K]
3 years ago
14

Barney takes his wife Betty to a Porsche dealership and tells her to pick out whichever car she wants as a birthday present. She

chooses a red Boxter. Barney negotiates a price with the dealership and signs a contract paying cash for the car. Barney repeatedly tells the dealer that the car is a gift for his wife. The car is to be serviced and picked up at 10:00 a.m. the next morning. Barney dies that night. When Betty arrives at the dealership to get the car, they refuse to give it to her because only Barney signed the contract?
Business
1 answer:
amid [387]3 years ago
8 0

Answer:

The car should be given to Betty because Barney already have a contract with the dealer and he has stated explicitly in the terms to the contract that the car belongs to his wife. Porsche dealer should be prosecuted for breach of contract in the court of law.

Explanation:

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In calculating the WACC, each source of capital is proportionately weighted according to its percentage contribution to capital.  The WACC is applied in capital budgeting as a firm preferred discount rate when calculating the net present value.

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