Sam Agreed to Purchase and Joe Agreed to Sell a Brand

question 139

Multiple Choice

Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300 that was displayed in the showroom at Joe's Fine Cars. But instead of delivering it to Sam, Joe sold it to another customer who offered him more money. Which of the following is the appropriate remedy in these circumstances?

• A) Specific performance
• B) Damages
• C) Injunction
• D) No remedy
• E) Rescission

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Definitions:

WACC

Weighted Average Cost of Capital; the average rate of return a company is expected to pay to all its security holders to finance its assets.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, which differs from its market value.

WACC Calculation

The process of calculating the Weighted Average Cost of Capital, which measures a firm's cost of capital from all sources, weighted according to the proportion of each capital component.

Annual Coupons

The interest payments made to bondholders annually over the life of the bond.