User Account

All Pages

Number of potential buyers to submit bids for mineral rights

Assignment Help Financial Management
Reference no: EM131315770

Gus Vincent sent invitations to a number of potential buyers to submit bids for the mineral rights to his 2,000-acre parcel in upstate New York on the outskirts of the City of Hudson. Seven bids were received, including the highest bid from International Mining and Cement Company, LTD. (IMC). Vincent then decided to hold onto the land for a few more years and never responded to any of the bidders. IMC claimed that a contract had been formed by submission of its winning bid and sued Vincent for breach of contract. Did a contract exist?

Reference no: EM131315770

Questions Cloud

Increase in the foreign interest : For a $1.50/£ call option with an initial premium of $0.033/£ and a phi value of –0.2, after an increase in the foreign interest (the pound sterling rate) rate from 8 percent to 9 percent, the new option premium would be A $0.035/£ B $1.48/£ C $0.031..
Amortization of bond premium on the straight-line method : January 1, 2011, Gonzalez Corporation issued $44,511 10% 14-year bonds at 103. Gonzalez has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method).
Inflation is expected to decline steadily in the future : Assume that inflation is expected to decline steadily in the future, but that the real risk-free rate, r*, will remain constant. Which of the following statements is CORRECT, other things held constant?
Statement of retained earnings night scapes : Statement of Retained Earnings Night Scapes, Corp. began the year 2008 with $14 million in retained earnings. The firm suffered a net loss of $2.4 million in 2008 and yet paid $2.04 million to its preferred stockholders and $1.04 million to its commo..
Number of potential buyers to submit bids for mineral rights : Gus Vincent sent invitations to a number of potential buyers to submit bids for the mineral rights to his 2,000-acre parcel in upstate New York on the outskirts of the City of Hudson. Seven bids were received, including the highest bid from Internati..
Real risk-free rate-maturity risk premium is zero : Assume the following: The real risk-free rate, r*, is expected to remain constant at 3%. Inflation is expected to be 3% next year and then to be constant at 2% a year thereafter. The maturity risk premium is zero. Given this information, which of the..
Ranges of the growth rates and the resulting dividends : A stock pays dividends of $1.00 at t = 1. (D1 is provided here, not D0)    It is growing at 35% between t =1 and t = 2, after which the growth rate drops to 10%, and will continue at that rate into the future. If the discount rate for this stock is 1..
Company expects this equipment will lead to cash flows : Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $816,322, $863,275, $937,250, $1,017,610, $1,212,960, and $1,225,000 over the next six years. If the appropriate disco..
Indifferent between the annuity and cash now : A very odd lottery offers the following annuity payment on the last day of each period. The payment amount is $5 ,000, and it will be received 4 times per year. (hint; this is a regular annuity) At what instant payout would you be indifferent between..

Reviews

Write a Review

Financial Management Questions & Answers

  Substantial dividend or repurchase shares of stock

Residential Inc. produced substantial profits in the previous year. Assume that Residential pays 35% corporate income tax. If investors are taxed at 25% on ordinary income, and have 0% capital gains tax, would Residential’s common stock investors pre..

  Sales are expected to increase

Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2013 to $9.66 million in 2014. Its assets totaled $3 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

  What is net annual benefit for investment in new lighting

A school has an old lighting system that costs on average SAR 20,000 a year for lighting the building. The old lighting system has zero salvage value at the end of its life. what is the net annual benefit for this investment in new lighting?

  What is the value of your bond today

Twelve years ago you purchased a 30 year bond with a call provision. The corporation may call the bond any time after 15 years by paying one year’s interest as a penalty. When you purchased the bond its coupon rate was 20% (paid semi annually), curre..

  How large of a sales increase can maggies muffins

Maggie's Muffins, Inc. generated $2 million in sales during 2007, and its year-end total assets were $1.5 million. Also, at year-end 2007, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $..

  Sales and earnings for emovies are expected to grow rapidly

Sales and earnings for eMovies are expected to grow rapidly over the next 5 years. Although the firm is currently losing money, eMovies expects to begin paying out 60% of earnings during the fiscal year ending in June of 20/20, with initial sharehold..

  What is the dividend growth rate g for this stock

A stock is selling for $50 in the market. The company's beta is 1.2, the market risk premium (rM - rF) is 5%, and the risk-free rate is 3%. The most recent dividend paid is D0 = $2 and dividends are expected to grow at a constant rate g. What's the d..

  Assume both portfolios-What must be the risk-free rate

Assume both portfolios A and B are well diversified, that E(rA) = 12.4% and E(rB) = 13.2%. If the economy has only one factor, and βA = 1 while βB = 1.1, What must be the risk-free rate?

  What is the marginal cost per pair

K-Too Everwear Corporation can manufacture mountain climbing shoes for $11.5 per pair in variable raw material costs and $18.12 per pair in variable labor expense. The shoes sell for $97 per pair. Last year, production was 140,000 pairs. Fixed costs ..

  Keep the equilibrium federal funds rate unchanged

Suppose that banks increase their demand for reserves. Show how the Fed can offset this change through open market operations in order to keep the equilibrium federal funds rate unchanged.

  Present value of an annuity stream-time value money

This assessment has two parts both addressing the subject of Time Value Money (TVM). Both parts should be submitted in the same paper. The main TVM problems relating to healthcare are: a) present value of a lump sum b) present value of an annuity str..

  Sales increase-having to raise funds externally

Pierce Furnishings generated $2 million in sales during 2012, and its year-end total assets were $1.4 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd