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Korolek [52]
2 years ago
7

Sarah's dog had purebred puppies that she decided to sell on www.puppyfind.com. She ships them using an airline. If a puppy dies

and the buyer decides to sue, who can he sue?
Sarah

the sole proprietorship

the airline carrier

all of the above
Business
1 answer:
Cerrena [4.2K]2 years ago
8 0

Answer:

The buyer should sue the airline carrier

Explanation:

Because it is the airlines job to make sure that the puppy are safe and health

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An actuarially fair level is the compensation level that is commensurate with the premium of the policy holder.

IF THE INSURANCE PREMIUM IS TO BE SET BELOW THE ACTUARIALLY FAIR LEVEL THE GOVERNMENT AND TAX PAYERS WILL BE EXPECTED TO PAY THE FOR THE DIFFERENCE.

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________ strategy involves the types of decisions made and direction created for a company that operates multiple lines of busin
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2 years ago
What restriction did the US government place on advertising in 1997?
12345 [234]

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The answer should be D, a ban of deceptive advertisements.

Explanation:

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3 0
2 years ago
Desert Rose, Inc., a prominent consumer products firm, is debating whetherto convert its all-equity capital structure to one tha
Rina8888 [55]

Answer:

A. $450

B. $480

C. $540

D. The choice of capitl structure is irrelevant because the amount of $480 is the payoff amount based on the proposed capital structure with 30% debt, which indicate that investors cannot make use of home leverage to help create the capital structure as well as the payoffs they like.

Explanation:

a) Calculation to determine her cash flow under the current capital structure

First step is to calculate the earnings per share

EPS = $29,000 / 6,500 shares

EPS = $4.5

Now let calculate the cash flow under the current capital structure

Cash flow = $4.5*(100 shares)

Cash flow = $450

Therefore her cash flow under the current capital structure will be $450

b) Calculation to determine What will be the cash flow be under the proposed capital structure of the firm

First step is to calculate the earnings per share

First step is to calculate the MV of the firm

MV of the firm= $45(6,500)

MV of the firm= $292,500

Second step is to calculate the Debt

Debt = .30 x ($292,500)

Debt= $87,750

Third step is to calculate the Interest

Interest =8% x $87,750

Interest = $7,020

Fourth step is to calculate the repurchase shares

Repurchase shares =$87,750 / $45

Repurchase shares= 1,950

Fifth step is to calculate the Shrout new

Shrout new =6,500 - 1,950

Shrout new=4,550

Therefore, under the new capital structure,

EPS = (EBIT - Interest) / shares outstanding new

EPS = ($29,000 -$7,020) / 4,550shares

EPS =$21,980/4,550 shares

EPS =4.8

The shareholder will receive = $4.8*(100 shares) = $480

Therefore What will be the cash flow be under the proposed capital structure of the firm is $480

c) Calculation to Show how she could unlever her shares of stock to re-create the original structure.

Now she owns a total of 200 shares

Her payoff =[ (100 shares+100 shares) x $4.5 ]- [8% x $(100 shares x $45)]

Her payoff =(200shares×$4.5)-(8%×$4,500)

Her payoff =$900-$360

Her payoff= $540

Therefore Based on the above Calculation Allison did not successfully replicate the payoffs (b) under the proposed capital structure

d).Based on the above Calculation the choice of capitl structure is irrelevant because the amount of $480 is the payoff amount based on the proposed capital structure with 30% debt, which indicate that investors cannot make use of home leverage to help create the capital structure as well as the payoffs they like.

7 0
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