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Triss [41]
2 years ago
6

Maddox Auto Parts, Inc., contracted with Billy's Mufflers Co. to purchase 35 mufflers from their warehouse supplies. All the muf

flers Maddox Auto Parts ordered were already made and packaged and merely required transportation to Maddox Auto Parts. Billy's Mufflers wrote out an order form designating which 35 mufflers were to go to Maddox Auto Parts. If a question as to when Maddox Auto Parts acquired an insurable interest in the mufflers were to arise, a court would likely hold that
Maddox Auto Parts gained an insurable interest in the mufflers:
A. at the time of contracting.
B. at the time the mufflers were
C. given to the carrier.
D. at the time of delivery.
E. 24 hours before delivery.
Business
1 answer:
juin [17]2 years ago
5 0

Answer: A. at the time of contracting.

Explanation:

Insurable interest is the reasonable concern to obtain insurance against unforeseen events such like losses or death. Insurable interest is when the loss of an object or damage would result in a financial loss.

Based on the information given, Maddox Auto Parts gained an insurable interest in the mufflers at the time of contracting. An individual will gain an insurable interest immediately s contract takes place.

Therefore, the correct option is A.

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Select the correct answer. Which part of a speech contains the speaker’s arguments, ideas, examples, and proof? A. the title of
Marina86 [1]

Answer:

Its in the body o

Explanation:

6 0
3 years ago
quilibrium in the money market exists when a. excess demand for money is equal to the quantity demanded of money at a given inte
Elanso [62]

Answer: b. excess supply of money is equal to the quantity demanded of money at a given interest rate.

Explanation:

Equilibrium in the money market takes is usually achieved when the quantity of money demanded is equal to the quantity supplied. The demand curve for money is used to illustrate the quantity of money demanded at a given interest rate. The demand curve for money usually sloped downward, what this tells us is that people would want to hold less of their wealth in the form of physical cash ( money ). When the interest rates on bonds and other alternative investments are way higher.

3 0
3 years ago
Equestrain Roads accepted a customer's $50,000 zero-interest-bearing six-month note payable in a sales transaction. The product
babunello [35]

Answer:

$4,000

Explanation:

The difference between the face value of note and the issuance value of the note is discount. This discount is recorded and amortized over the note life to maturity. As the note is for 6 months and There are also six months from June 30, to December 31. So, all the Discount of $4,000 ($50,000-$46,000)  will be recognized as Interest Income. This discount can be amortized and recognized as Interest Income on monthly basis or collectively at the year end.

3 0
3 years ago
Value Electronics Company started its operations on January​ 1, 2019. Value engages in buying and selling different types of ele
Sladkaya [172]

Answer:

The correct answer is A. purchase inventory from vendors

Explanation:

The inventory is a detailed, orderly and valued relationship of the elements that make up the assets of a company or person at a given time. In the past, it was normal for inventories to be carried out by physical means (they were written on paper), but now they are usually kept in databases centrally to an entire company, even if there are companies or small stores that continue doing so with paper.

The inventory is:

  • detailed because the characteristics of each of the elements that make up the heritage are specified.
  • ordered because it groups the assets in their corresponding accounts and the accounts in their assets.
  • valued because the value of each asset is expressed in monetary units.
5 0
3 years ago
he director of capital budgeting for See-Saw Inc., manufacturers of playground equipment, is considering a plan to expand produc
kicyunya [14]

Answer and Explanation:

The computation is shown below:

Debt = D ÷ (E + D)

= 0.8 ÷ (1 + 0.8)

= 0.4444

Now

Weight of equity = 1 - Debt

= 1 - 0.4444

= 0.5556

As per Dividend discount model

Price = Dividend in 1 year ÷ (cost of equity - growth rate)

40 = $2 ÷ (Cost of equity - 0.06)

Cost of equity = 11%

Cost of debt

K = N

Let us assume the par value be $1,000

Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N

k=1

K =25

$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25

k=1

YTM = 9

After tax cost of debt = cost of debt × (1 - tax rate)

= 9 × (1 - 0.21)

= 7.11

WACC = after tax cost of debt × W(D) + cost of equity ×W(E)

= 7.11 × 0.4444 + 11 × 0.5556

= 9.27%

As we can see that the WACC is lower than the return so it should be undertake the expansion

5 0
2 years ago
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