Delaney Is a Locally Famous Cabinet Maker with a Contract

question 6

Multiple Choice

Delaney is a locally famous cabinet maker with a contract to build cabinets for the new Designer Fashions headquarters.However, Delaney injures his wrist and cannot work.Designer Fashions hears about the injury and realizes that Delaney will not be able to finish the contract in the scheduled time.At common law, Designer Fashions can

• A) sue immediately under anticipatory repudiation.
• B) wait for the day of performance and then sue if the cabinets are not done.
• C) either sue or wait.
• D) there is no remedy in this situation at common law.

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Definitions:

Dividend Growth

The rate at which a company's dividend payments to shareholders increase over time, indicating potential profitability and stability.

Flotation Costs

The costs associated with issuing new securities, including underwriting, legal, and registration fees.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.

Constant Dividend

A policy of distributing a fixed amount of dividend per share to shareholders, regardless of the company's earnings variations over time.