Which of the Following Propositions Is TRUE in the Context

question 43

Multiple Choice

Which of the following propositions is TRUE in the context of the doctrine of promissory estoppel?

• A) The representee cannot rely on the representor's gratuitous promise if the representor was guilty of inequitable behaviour.
• B) Once legal rights are affected by the doctrine of promissory estoppel, they can never be revived.
• C) Promissory estoppel can only be based on representations of existing or past facts.
• D) The doctrine of promissory estoppel is effective only if the representee relied upon a statement by the representor.
• E) Promissory estoppel can be used as a sword but not as a shield.

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Definitions:

Unlevered Firm

A firm that operates without any debt in its capital structure, using only equity for financing.

After-Tax Net Income

The amount of money that remains after all taxes have been deducted from a company's gross income.

Unlevered Cost of Capital

The cost of capital for a company without any debt, reflecting the required return on equity investments in a firm without leverage.

All Equity Firm

A company that finances its operations without any debt, using only its own equity.