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tamaranim1 [39]
4 years ago
12

DFA, a Kansas cooperative, has its principal place of business in Kansas City, Missouri. Bassett, an international commodities b

roker and a Canadian corporation, has its principal place of business in Toronto, Ontario. Bassett is not qualified to do business in Missouri; has no agent for service of process, offices, property, bank accounts, telephone listings, or employees there; and does not advertise or promote its business there. Between July 2009 and February 2011, Bassett purchased more than 3.5 million pounds of dairy products from DFA in about 80 transactions totaling $5 million. The parties did not have a long-term contract, agreeing to each transaction individually by phone. Bassett communicated by phone and email with DFA's Missouri headquarters about delivery and billing. Bassett stopped paying on his account at DFA and DFA sued Bassett in Missouri for failure to pay. The district court dismissed the suit for lack of personal jurisdiction. The total amount due on the account was $220,000. ​
What type of case is this?
a. Court of claims
b. Civil matter
c. Bankruptcy matter
d. Small claims
Business
1 answer:
RideAnS [48]4 years ago
8 0

Answer:

The given case is a Civil Matter case.

Explanation:

Civil cases often involve individuals or organizations such as companies, generally regarding disputes over money - or any species of capital. A case of civil matter usually begins when one person or business  - the plaintiff -claims to have been prejudiced by the actions of another individual or organization - the defendant. The plaintiff then requests the court for deliverance by filing a complaint and starting a court case. The plaintiff may ask the court: 1. To award damages (money compensation); 2. For an injunction, to limit or require compulsory actions from the defendant; 3. To issue a declaratory judgment, in which the court determines the parties' rights under a contract or statute.

Eventually, to mitigate the case, the court - a judge or a jury - will determine the facts of the case and apply the appropriate legislation to it. Then, the court - or jury - will determine which legal consequences will occur given the parts' conducts.

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The common stock of the P.U.T.T. Corporation has been trading in a narrow price range for the past month, and you are convinced
konstantin123 [22]

Answer:

A) according to put call parity:

price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]

put = $6.93 - $125 + [$140 / (1 + 5%)¹/⁴] = $6.93 - $125 +$138.30 = $20.23

B)

you have to purchase both a put and call option ⇒ straddle

the total cost of the investment = $6.93 + $20.23 = $27.16, this way you can make a profit if the stock price increases higher than $125 + $20.23 = $145.23 or decreases below than $125 - $20.23 = $104.77

4 0
3 years ago
Sure Tea Co. has issued 6.3% annual coupon bonds that are now selling at a yield to maturity of 9.20% and current yield of 8.777
alina1380 [7]

Answer:

Ans. 26 years is the remaining maturity of this bond.

Explanation:

Hi, we have to find the price of the bond, so we use the following formula.

CurrentYield=\frac{Coupon}{Price}

This means that:

Price=\frac{Coupon}{CurrentYield} =\frac{63}{0.08777} =717.79

Let´s not forget that the Coupon is calculated by the following formula.

Coupon=FaceValue*CouponRate=1,000*0.063

Now that we found that the price of the bond is $717.79, we have to bring to present value the remaining coupons and the principal that is paid at the end, so we have to solve for "n" the following equation, discounted at the yield to maturity.

Price=\frac{Coupon((1+YTM)^{n}-1) }{YTM(1+YTM)^{n} } +\frac{FaceValue}{(1+YTM)^{n} }

Let´s fill up what we can

717,79 =\frac{63((1+0.092)^{n}-1) }{0.092(1+0.092)^{n} } +\frac{1,000}{(1+0.092)^{n} }

But to solve for "n" is pretty painful, so we can use a financial calcultator o MS Excel. Please find the MS Excel sheet that I used with the "Seek Goal" formula instruccions as follow.

Set Cell: $C$19

To Value: 717,79

By Changing cell: $C$14

So the answer is 26

Best of luck.

Download xlsx
4 0
4 years ago
Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond
cricket20 [7]

Explanation:

The Journal entry is given below :-

Bonds payable                                      $2,000,000

      To common stock                          $1,000,000

      To Discount on common stock     $30,000

      To Paid in capital                            $970,000

The calculation of bonds payable, common stock is below:-

For bonds payable            

= 2,000 × $1,000

= $2,000,000

For common stock

= 2,000 × 50 × $10

= $1,000,000

For paid in capital

= $2,000,000 - ($1,000,000 - $30,000)

= $970,000

4 0
3 years ago
What is the functions of a commercial bank? Explain.
Goshia [24]

A commercial bank offers products and services such as loans, savings accounts, safety deposit boxes and mutual fund/insurance to individuals and businesses.

6 0
4 years ago
A company's pretax cost of debt:
sertanlavr [38]

Answer:

D.

Explanation:

Firstly, we need to keep in mind when it comes to cost of capital (debt or equity) is that it have to be incremental cost. Use bond yield to maturity rather than other yield to estimate cost of debt.

Let go through each of answer option one by one:

a. is based on the current yield to maturity of the company's outstanding bonds. => include both old bonds and recently-issue bonds => not incremental cost => False

b. is equal to the coupon rate on the latest bonds issued by the company. => Coupon rate is not relevant => Fasle

c. is equivalent to the average current yield on all of a company's outstanding bonds. => Current yield is not relevant => Fasle

d. is based on the original yield to maturity on the latest bonds issued by a company. => Meet all requirement => True

3 0
4 years ago
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