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The objective theory of contracts means that we view mutual assent and the other elements of contracts from an objective, rather than subjective, perspective. We do not care what the subjective and unstated intent of a particular party is. We are concerned with what the party did to the other party and whether a reasonable ordinary person would have interpreted those actions as an intention to contract.
On the terms of the contract, the same is true. We look at what the ordinary person would have interpreted the contract terms to mean. Unless there is a specific definition of the terms in a contract, we use the ordinary dictionary definition of the terms.
Can you think of reasons why we use the objective theory of contracts?
Giant Electronics is issuing 20-year bonds that will pay coupons semiannually. The coupon rate on this bond is 7.8 percent. If the market rate for such bonds is 7 percent, what will the bonds sell for today?
In your own words, Please explain how does a particular type of competitive strategy affect capital structure?
From the Headlines—Tesla: Comment on Tesla’s trip from incorporating in 2003 to its IPO in 2010. What impact do you think the IPO will have on competitors in the electric car market?
as weather forecasts for the weekend continue to improve it appears mother nature wont have as much of an impact on
A company bonds have 4 years left to maturity. interestis pain annually and the bonds have a $1000 par value and a couponrate of 9%.
atlas insurance wants to sell you an annuity which will pay you 600 per quarter for 25 years. you want to earn a
1. What is the difference between forward and futures contracts? 2. How can Eurodollar futures used by large corporations? How the Eurodollar futures contract works. 3. Why do we have futures contracts on Treasury bonds but we do not have that on ind..
A 10-year bond pays annual interest of 8% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond?
[Note: The information presented here applies to questions 1, 2, 3, and 4.] You are looking at a new home in suburban New Jersey which is selling for $250,000. The rent on similar homes in the same development is $1,500 per month. Based on this..
A home buyer buys a house for $ 2 comma 314 comma 000. She paysâ 20% cash, and takes a fixed-rate mortgage for ten years at 6.05â% APR.
Shapland Inc. has fixed operating costs of $400,000 and variable costs of $40 per unit. If it sells the product for $50 per unit, what is the break-even quantity?
A federal statute that makes it more difficult for businesses to qualify for protection under bankruptcy laws.
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