Suppose that jack makes an offer to sell the restaurant on july 10th. hal and sophia decide to think it over. on july 15th, they mail a letter of acceptance to jack. on july 16th, hal and sophia change their mind and call jack, stating that they do not want to purchase the business. on july 20th, jack receives the letter of acceptance. would there be a valid contract? yes, a valid contract was formed on july 15th when the letter of acceptance was sent. yes, a valid contract was formed on july 20th when the letter of acceptance was received. no, because hal and sophia informed jack that they did not want to buy the business prior to jack receiving the letter of acceptance. yes, a valid contract was at the time that jack opens the letter and actually reads it.

What is the most important factor that affects the value of a company? a) cash flow b) earnings c) supply and demand d) number of employees

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Explain whether each of the following events increases or decreases the money supply. a. the fed buys bonds in open-market operations. b. the fed reduces the reserve requirement. c. the fed increases the interest rate it pays on reserves. d. citibank repays a loan it had previously taken from the fed. e. after a rash of pickpocketing, people decide to hold less currency. f. fearful of bank runs, bankers decide to hold more excess reserves. g. the fomc increases its target for the federal funds rate.