Sam Jones Has an Engineering Firm

question 44

Multiple Choice

Sam Jones has an engineering firm. He wants to build a new headquarters building. The building will cost $1,500,000. He will put down $450,000 and have a bank finance the remainder at prime plus 2 percent. The prime lending rate is currently 8.5 percent. Sam will withdraw the money for the down payment from his mutual fund account where he has earned 13 percent for the last ten years. What is Sam's weighted average cost of capital?

• A) 11.25%
• B) 13.00%
• C) 10.5%
• D) 8.5%

Understand the legal obligations and duty to act in specific circumstances.

Understand the concept of duty of care in tort law, including how it varies depending on the entrant's status.

Gain knowledge around the scope of actions and activities that do not fall under the Third Restatement of Torts, relating to economic harm.

Analyze and interpret proximate cause in the context of negligence cases, distinguishing its application in various scenarios.

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Definitions:

Count And Divide

A method involving enumeration and separation into parts or groups, typically used for analytical or problem-solving purposes.

Intuitive Judgment

The ability to understand or know something without the need for conscious reasoning or direct evidence.

Bias

A tendency to favor or lean towards a particular perspective, judgment, or result over others, often in a way considered to be unfair.

Intuitive Judgments

Decisions or assessments made based on gut feelings or instincts rather than analytical reasoning or explicit reasoning.