Yes, Rubio will be able to successfully sue and collect the $1,000 later because their agreement was not fulfilled.
<h3>What is an agreement in contract?</h3>
In contract, an agreement is an element of what makes a contract valid. When an agreement is breached, then, the aggrieved party have a right to void the contract.
In conclusion, the answer is yes because Rubio will be able to successfully sue and collect the $1,000 later because their agreement was not fulfilled.
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Answer:
$53,600
Explanation:
The computation of the cash flow from investing activities is shown below:
Cash flow from investing activities
Sale value of machinery $53,600
Net cash flow from investing activities $53,600
The current year depreciation expense is to be reported under operating activities and as we know that the investing activities record those activities which are held for purchased and sale of long term assets so the sale value fo machinery is only reported
Answer:
Rust Pipe Co.
The Percentage of the Founder's Family Votes to Class B Votes:
= Founder's Family Votes / Class B Votes x 100 = 577,775/1,747,475 x 100 = 33.-6%
Explanation:
Total votes for the Founder's Family = 52,525 x 11 = 577,775
Class B votes = 1,747,475 (1,800,000 - 52,525) x 1 vote = 1,747,475
Founders of companies who want to go public but still retain control of the entity may decide to issue two or more classes of shares in order to allocate more voting rights to some classes than the others.
In this case, while the founder's family currently held 52,525 shares representing 29.2% of the total outstanding shares, in voting rights, the founder's family has 33.6% control.
Answer:
a. Suppose GP issues $ 100$100 million of new stock to buy back the debt. What is the expected return of the stock after this transaction?
b. Suppose instead GP issues $ 50.00$50.00 million of new debt to repurchase stock. i. If the risk of the debt does not change, what is the expected return of the stock after this transaction?
ii. If the risk of the debt increases, would the expected return of the stock be higher or lower than when debt is issued to repurchase stock in part (i)?
- If the risk of the debt increases, then the cost of the debt will increase. Therefore, the company will need to spend more money paying the interests related to the new debt which would decrease the ROE compared to the 18% of (i). Since we do not know the new cost of the debt, we cannot know exactly by how much it will affect the ROE, but I assume it will still be higher than the previous ROE.
Explanation:
common stock $200 million
total debt $100 million
required rate of return 15%
cost of debt 6%
current profits = ($200 million x 15%) + ($100 x 6%) = $30 million + $6 million = $36 million
if equity increases to $300 million, ROI = 36/300 = 12
if instead new debt is issued at 6%:
equity 150 million, debt 150 million
cost of debt = 150 million x 6% = $9 million
remaining profits = $36 - $9 = $27 million
ROI = 27/150 = 18%
Answer:
E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.
Explanation:
The Journal entry is shown below:-
Retained earnings Dr, $7,400 (14,800 × $0.50)
To Common dividend Payable $7,400
(Being dividend declaration is recorded)
Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability
So the correct option is D.
