For an Assigned Claim to Be Valid

question 36

Multiple Choice

For an assigned claim to be valid:

• A)the assignee must have the capacity to contract.
• B)the contract must not be illegal or known by the assignor to be voidable.
• C)the contract must have been discharged once prior to the assignment.
• D)the assignee must have good title before the rights are assigned.

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Definitions:

Market Price

The live market price at which an asset or service can be bought or sold.

Weighted Average Cost of Capital (WACC)

A calculation of a company's cost of capital, weighted by the proportion of each source of capital (debt and equity), used to see how much interest the company pays for every dollar it finances.

Cost of Preferred Stock

The dividend required to be paid by an entity for the funds received from issuing preferred shares, typically expressed as a percentage.