A Promise That the Grantor of an Interest in Land

question 17

Multiple Choice

A promise that the grantor of an interest in land will execute any additional documents required to perfect the title of the grantee is known as a covenant:

• A) of seisin.
• B) of further assurances.
• C) against encumbrances.
• D) of quiet enjoyment.

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Definitions:

After-Tax Cost

The net cost of a transaction or investment after the effects of taxes are considered, often used in analyzing the cost of financing options.

Specific Capital

This refers to the various types of capital (debt, equity, etc.) a company uses for financing its operations and investments, with each type having its own cost and characteristics.

Component Costs

The individual costs associated with the different sources of capital a firm utilizes in its capital structure.

Embedded Costs

Embedded costs refer to the expenses that a company has already incurred and cannot be recovered.