Would the fairness rule or business judgment rule

Assignment Help Financial Management

Reference no: EM131911721

Keith Harris, a shareholder of Fastway Airlines, Inc., discovered that Donald Fleure, chief executive officer of Fastway, had sold some of his own land to the corporation at what Harris believed to be excessive prices. Can Harris bring a direct or a derivative suit in this situation? Explain. Would the fairness rule or the business judgment rule be used to evaluate the activities of Fleure? Explain.

Reference no: EM131911721

Questions Cloud

Identical in every way except their capital structures : Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. What is the value of each firm?

Which provide the greatest benefit to global economy : Which provide the greatest benefit to the global economy?

Roberts auto sales and service consists of car dealerships : Roberts Auto Sales and Service (RASAS) consists of three car dealerships that sell and service several makes of American and Japanese cars, two auto parts store

What is monthly mortgage payment : The mortgage rate is 7.5% and the loan period is 30 years. Payments are made monthly. What is the monthly mortgage payment?

Would the fairness rule or business judgment rule : Would the fairness rule or the business judgment rule be used to evaluate the activities of Fleure?

Assume constant growth dividend policy : The company will assume a constant growth dividend policy and the estimated growth rate in dividends forever after that point is 3%.

Find btcf and atcf internal rates of return : The inventory will be sold for $35K at the end of fifth year. The profits are taxed at 33%. Find BTCF and ATCF internal rates of return.

Future worth of your investment in terms of actual dollars : What is the future worth of your investment in terms of actual dollars at that time and in terms of real base-zero dollars at that time?

What is taxable income for the first year : What is taxable income for the first year and how much should the company expect to pay in taxes?

User Account

All Pages