Answer:
The answer is: $250,000
Explanation:
Larkin's investment can be calculated as follows:
carrying investment at the beginning of the year + share of profits form the year's operation - share of dividends paid during the year =
$200,000 + ($600,000 x 25%) - ($400,000 x 25%)=
$200,000 + $150,000 - $100,000 = $250,000
Answer: Yes,it is legal and or ethical to allow Tommy to escape his contractual obligations.
Explanation:
A contract is an agreement made between two or more persons which the court of law can enforced. Under the law of contract, one of the essential elements of a valid contract is capacity, which states that a person must be of legal age before such a person can enter into a contract. For example a legal age is 18 years. In a law of contract any contract enter into with a minor is null and void according to the law. The exception to this rule is when a minor enter into a contract for the supply of necessity such as food and clothing. It is evidence that Tommy McCartney is 16 years old as at the time of entering into the contract for the purchase of the car from the store. In this case, by virtue of being a minor he does not have the backing of the law to enter into the contract for the purchase of the car from the store as at the time he does so.
Therefore, based on this legal point ,the contract is voidable.Tommy money must be returned to him because the contract between him and the store is null and void.It is therefore legal to allow Tommy to escape his contractual obligations
Answer:
Intrinsic value of a firm is the actual value of the firm, and not the market price of the share based value.
Explanation:
Intrinsic value is generally computed using the asset based method, as per this method we compute the actual value of each asset in the firm separately, and then deduct the value of liabilities from it. In this manner, we estimate the current value of the firm.
Whereas the market value is computed using the stock price of in the market.
As the market value is based solely on the market value of the stock, it does not consider sometimes the actual circumstances, as for example, the land value of the firm might be 10 times more than the value recorded in the books. Because it is recorded at historical cost, although the current value is generally more of a well established firm.
Answer:
All of the above.
Explanation:
The hypothesis of an efficient market can be defined as the statement that financial markets are efficient in relation to information, that is, the prices of securities must reflect all available information. This hypothesis holds that the expected return on a security is equal to the return on equilibrium, which means that an agent is not able to achieve returns above the market average, as his returns would be consistent with the public information that must be available at the time that the investment is made.
So all of the above are true.