In the Industrial Development Board of the City of Montgomery

question 8

Multiple Choice

In The Industrial Development Board of the City of Montgomery v.Russell,the case in the text,the court held that:

• A)the City was not a party to the option agreements and therefore was not liable for breach of contract because IDB was not acting as the City's agent.
• B)the assignment of rights under a contract relieves the assignor of any potential liability for duties not performed under the assigned contract.
• C)IDB should not be relieved from liability based on its assignment of its rights under the option agreements.
• D)IDB did not assign the City and the County its rights under the option agreements.

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Definitions:

Face Value

The nominal or dollar value printed on a bond, bill, or other financial instrument, representing the amount due at maturity.

After-Tax Cost of Debt

The interest rate on a company's debt after taking into consideration the tax deductibility of interest expenses.

Zero Coupon Bond

A type of bond that does not pay interest during its life but is sold at a deep discount, paying its full face value at maturity.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, varying across income or profit levels.