Would turning back the odometer be an ethical action

Assignment Help Financial Management
Reference no: EM131530822

Perkins intended to sell his two-year- old automoblie through an advisement online. Since the car had more than 80,000 miles on it, Perkins reasoned that a buyer would be more willing to purchase the vehicle if he turned back the odometer to 30,000 miles, The car still looked quite new, and Perkins needed the money the sale would bring.

a. Would turning back the odometer be an ethical action?

b. If Perkins did not turn back odometer and the car could not be sold due to the high mileage, and if his family suffered as a result, would Perkins be justified in turinng back the odometer to benefit his family?

Reference no: EM131530822

Questions Cloud

Calculate total risk weighted assets : Calculate GlobalBankCrédit Financial Holdings PLC’s total risk weighted assets.
What happens to the expected return on the stock : If Northern Sludge issues an additional $24 million of common stock and uses this money to retire debt, what happens to the expected return on the stock?
What is the firm after-tax cost of debt : what is the firm's after-tax cost of debt?
Affect the decision-making process : In equipment-replacement decisions, which one of the following does not affect the decision-making process?
Would turning back the odometer be an ethical action : Perkins intended to sell his two-year- old automoblie through an advisement online. Would turning back the odometer be an ethical action?
The operating expenses are fixed costs and P-E ratio : Assume that the operating expenses are fixed costs and P/E ratio based on the current market price per share.
A venture capital firm menlo ventures : A venture capital (VC) firm Menlo Ventures is willing to provide financing of up to $5 B in acquisition of Pharmaset.
Rasied before the retained earning break even : how much addational capital can be rasied before the retained earning break even?
What is the present value of company with WACC : What is the present value of a company with a WACC of 12%, and the following cash flows for years 1 to 5,

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the present value of a growing perpetuity

Calculate the present value of a growing perpetuity that makes one payment per year with the first payment, made in exactly one year from now, being $1000. Let the payments grow at an annual rate of 10.5 percent (g = .105).

  Dollar-denominated assets-the foreign exchange markets

The 12-month interest rate on dollar-denominated assets (like bank deposits) is 5.00%. The 12-month interest rate on euro-denominated assets is 2.50%. The current spot exchange rate is $1.20 per €. Explain what you should do today on the foreign exch..

  Does a principal-agent relationship exist among the parties

Kenny Willis and his neighbours, Rick and Joyce Taylor, were good friends. Rick helped Kenny repair his truck and Kenny cut the Taylors’s yard because they did not own a lawnmower. Does a principal-agent relationship exist among the parties?

  Calculate the price of each call using black scholes

You are interested in purchasing a call option on a common stock that is currently trading at a price of 100 per share. you are given the following information: the standard deviation is .4, the time to maturity is 3 months, and ln (current share pri..

  A normal treasury yield curve demonstrates

A “normal” Treasury yield curve demonstrates that as time to maturity increases:

  Compute the uncapped and capped payments-loan balances

Fully amortizing, however, negative amortization allowed if payment cap reached. Based on estimated forward rates, the index to which the ARM is tied is focused as follows: Compute the uncapped and capped payments, loan balances, and yield for an ARM..

  About the current bond price

You are thinking of purchasing one of Jittery Joe's Coffee Shop's twenty year bond that has 15 years left to maturity, has a coupon rate of 4.80 percent and makes quarterly payments. If the YTM on these bond is 5.4 percent, what is the current bond p..

  Explain how an interest rate is just a price

Explain how an interest rate is just a price.

  What is the dividend yield for each of these four stocks

Consider four different stocks, What is the dividend yield for each of these four stocks? What is the expected capital gains yield?

  What is the average collection period

Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/30, net 40. Based on experience, 65 percent of all customers will take the discount. What is the average collection period? If the company sells 1,350 forecas..

  Explain how adjusted book value approach to valuing assets

Define economic value and explain how an adjusted book value approach to valuing assets and liabilities moves book value nearer to economic value.

  Exchange rate between yen and the dollar to be in one year

According to the interest-rate parity condition, what do investors expect the exchange rate between the yen and the dollar to be in one year?

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!

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