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kotykmax [81]
3 years ago
8

Jim agrees orally with West Bank to guarantee a loan that West Bank will make to Susan to purchase an existing restaurant upon S

usan's agreement to pay Jim 10% of the gross revenues for two years. All parties orally agree. Jim's guaranty agreement with West Bank is unenforceable under the Statute of Frauds.A. Trueb. False
Business
1 answer:
andrew-mc [135]3 years ago
5 0

Answer: false

Explanation:

The statute of frauds requires some specific contracts types to be executed in writing. According to the statute, the contracts covered include agreements that involve goods worth over $500,

contracts for land sale, and also contracts that last for either one year or more.

Based on the scenario above, it is false as Jim's guaranty agreement with West Bank is enforceable under the Statute of Frauds

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The relationship between employer and employee can be thought of in terms of a(n) ____, a description of what an employee expect
nydimaria [60]

Answer:

The answer is: psychological contract

Explanation:

Psychological contracts are the expectations or promises exchanged between the parties; employer, employee, or even fellow employees, in an employment relationship. They are not written contracts, but they often implicit or understood between the parties. For example, an employee expects that if he or she works really hard, eventually he or she will receive a promotion or a salary raise.

8 0
3 years ago
A company reported the following financial information: Taxable income for current year $120,000 Deferred income tax liability,
Inessa05 [86]

Answer:

$41,000

Explanation:

Calculation to determine The current-year's income tax expense amount

First step is to calculate the current tax expense

Current tax expense=$120,000 taxable income × 35% tax rate

Current tax expense=$42,000

Second step is to calculate the deferred income tax liability increased

Deferred income tax liability=$55,000-$50,000

Deferred income tax liability=$5,000

Third step is to calculate the deferred income tax asset increased

Deferred income tax asset=$16,000-$10,000

Deferred income tax asset=$6,000

Now let calculate the current year's income tax expense

Current year's income tax expense = $42,000 + $5,000 - $6,000

Current year's income tax expense=$41,000

Therefore Current year's income tax expense is $41,000

3 0
3 years ago
winston baker will invest $25,000 in a spa that his sister is starting. he will triple his investment in six years. what is the
Ronch [10]

Winston Baker will put $25,000 into his sister's new spa. In six years, he will have tripled his investment. Winston has been promised a 20% rate of return.

<h3>What is meant by Rate of returns?</h3>
  • The annual rate of return is the percentage change in an investment's value. For instance, if you assume a 10% annual rate of return, you are assuming that the value of your investment will rise by 10% each year.
  • A rate of return (RoR) is the net gain or loss of an investment over a given time period expressed as a percentage of the initial cost of the investment.
  • When you calculate the rate of return, you are calculating the percentage change from the beginning to the end of the period. ROI is calculated by subtracting the initial cost of the investment from the final value, dividing the result by the cost of the investment, and finally multiplying it by 100.

To learn more about Rate of returns, refer to:

brainly.com/question/24301559

#SPJ9

6 0
1 year ago
Drug companies are allowed to be monopolists in the drugs they discover in order to A. allow drug companies to charge a price th
den301095 [7]

Answer:

The correct answer is D) "None of the above is correct."

Explanation:

Drug companies are allowed to be monopolists in the drugs they discover to encourage research and development

4 0
3 years ago
The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 7% per year. Carpetto'
Galina-37 [17]

Answer:

Dividend growth rate (g) = 7% per year

Common Stock value (P0) = $23 per share

Dividend just paid (or) Last dividend (D0) = $2

Current year dividend to pay (D1) = $2.14

(a) Using the DCF approach, what is its cost of common equity?

Cost of Common Equity (R) = [D1 / P0] +g

Cost of Common Equity (R) = [$2.14 / $23] + 0.07

Cost of Common Equity (R) = 0.1630 (or) 16.30%

Cost of Common Equity (R) = 16.30%

(b) If the firm’s beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm’s cost of common equity using the CAPM approach?

Beta = 1.6

Risk-free rate (Rf) = 9%

Return on the Market (RM) = 13%

Calculating Firm’s Cost of Common Equity using the CAPM approach:

According to CAPM approach:

Cost of common equity (RE) = [Rf + β (RM – Rf)]

Cost of common equity (RE) = [9% + 1.6 (13% - 9%)]

Cost of common equity (RE) = [9% + 1.6 (4%)]

Cost of common equity (RE) = [0.09 + 1.6 (0.04)]

Cost of common equity (RE) = 0.154 (or) 15.4%

Cost of common equity (RE) = 15.4%

(c) If the firm’s bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs?

rs= Bond rate + Risk premium

rs= 12% + 4%

rs= 16%

d. The two approaches bond-yield-plus-risk premium approach and CAPM both has lower cost of equity than the DCF method. The firm’s cost of equity estimated to be 15.9% which is the average of all the three methods.

Explanation:

5 0
3 years ago
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