Bob Contracts to Sell Ben 20 Bales of Hay

question 48

Multiple Choice

Bob contracts to sell Ben 20 bales of hay.A bale is the accepted commercial unit in hay transactions.Ben accepts only 9 1/5 of the 20 bales.Under the UCC,Ben is considered to have accepted:

• A)all 20 bales.
• B)10 bales.
• C)9 bales.
• D)nothing.

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Definitions:

Risk Premium

The additional return that an investor expects to receive for taking on a higher level of risk compared to a risk-free investment.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate that a company is expected to pay on its securities, taking into account debt and equity.

Target Capital Structure

The mix of debt, equity, and other securities that a company aims to hold in order to finance its assets and operations ideally.

Flotation Costs

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