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1. (a) Explain by reference to case law how the courts make the distinction between a contract of service and a contract for services. What is the importance of this distinction?
(b) Fred is employed by Dan's Garage. John, a customer, fills up with petrol and goes to pay. Because of a mechanical fault there is a difference between the value of the sale shown by the pump and that shown by the terminal which Fred is using. Fred insists that the pump is wrong and that the value of the sale is £5 more than the pump is showing. There is an argument and suddenly Fred gives John a punch which breaks his nose.
John is now claiming against Dan on the basis that he is liable for the damage resulting from the assault.
Explain the legal position to Dan.
Write a DETAILED analysis and comparison of the income statement items and differences between the two. Be sure to explain why the common-size statement is helpful in this analysis.
MBM estimates its expansion cost at $18.63 million and wants to fully fund upfront. Management has decided to save $1.1 million a quarter for this purpose. The firm earns 6.25 percent, compounded quarterly, on its savings. How long does the firm have..
What will be the amount of deposits at the end of each year if it is compounded at 12% semi-annually
What rationale suggests that a contra cyclical investment strategy should, on average, outperform the market? Is it possible to consistently earn above average returns by timing security purchases?
You want to buy a new sports coupe for $75,600, and the finance office at the dealership has quoted you a loan with an APR of 8 percent for 48 months to buy the car. Monthly payments. Effective annual rate on this loan.
FIN Inc. is trying to determine the required rate of return on its stock. The stock is current selling for $50 and yesterday the stock paid a dividend of$1.45. The dividend growth has previously been 7.5% and is expected to continue to grow at 7.5%. ..
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Meacham Corporation wants to issue bonds with a 9% coupon rate, a face value of $1,000, and 12 years to maturity. Meacham estimates that the bonds will sell for $1,090 with issuing (flotation) costs equal $15 per bond—this reflects an 8% before tax c..
A convertible bond has a 8 percent coupon, paid semiannually, and will mature in 20 years. If the bond were not convertible, it would be priced to yield 7 percent. The conversion ratio on the bond is 20 and the stock is currently selling for $53 per ..
Use the following information to complete Luke and Lisa Lane’s 2014 federal income tax return, including the following forms and schedules: Form 1040, Schedules A, B, C, D, E, SE, Forms 2106, 4562 (for dental practice), 8582, 8863, 8949, 1040-V. If i..
The firm has a 75% chance if it invests -$1,500 a return of $500 for 7-years, and a 25% chance of returning $25 for 7-years. Calculate the effect of waiting on the project's risk, using the same data. By how much will delaying reduce the project's co..
What is the unlevered cost of equity for a firm composed of 50% debt and 50% equity, a Wacc of 14% and a cost of debt of 8%. the tax rate of 39%
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