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Negligence and Product Liability are two of our main topics for this week. Negligence is an "unintentional tort" because it happens by accident. Product Liability arises when one is injured by a defective product.
Consider the scenarios below. Choose one and determine if it describes negligence or product liability. Explain your answer and be sure to discuss the elements of any claims that may arise.
Daisy is driving in her car when her phone chimes. She picks up her phone and sees a text from her friend. While responding to the text Daisy runs a red light and causes an accident.
Janet just moved from Florida to Minnesota and is enjoying the scenery of a beautiful snowfall when she sees a person slip and fall on the ice on sidewalk in front of her house.
Larry is a lumberjack. He decides to purchase a new chainsaw. The first time Larry uses the chainsaw the product malfunctions and Larry is injured.
If the one-year rate of interest is 10% p.a. (continuously compounding), is the call price free from arbitrage, assuming that the stock pays no dividends?
What is the balance in the account after 2 years. How much of this balance corresponds to "interest on interest"
What would the appropriate tax rate be for use in the calculation of the debt component of LilyMac’s WACC?
What is the after-tax cost of debt, preferred stock and common stock? What is the weighted average cost of capital for the firm.
Alternative B is a foregin-built Fiasco. its initial cost is $8000, the operating cost,also excluding depreciation, is $0.08/km.
Find the following values for a lump sum assuming semiannual compounding.
how much money is required today to provide a perpetual income of $7.280 per year? Assume no money is withdrawn or deposited during any year.
Straddles and spreads are the most common combined options trading strategies. Explain and diagram a bull spread- when would you use this strategy?
Assume you are the Chief Financial Officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investments - Project X & Project Y. Each project has a net investment outlay of $10,000 and the opportunity cost for each p..
What is the terminal (or non-operating) cash flow for the project?
What is the exact interest rate differential between the 2 areas?
What is the maximum price you would pay for a share today if you wanted to earn a 12% return?
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