Which of the Following Is True Regarding Monique's Claim That

question 5

Multiple Choice

Which of the following is true regarding Monique's claim that Linda unfairly coerced Willy into naming her as a beneficiary in the written will and that the written will is ineffective?

• A) The written will is ineffective if Willy wrote it under circumstances by which Linda took advantage of his weak physical or emotional condition to persuade him to write the will leaving her everything.
• B) The written will is ineffective only if a witness is available who will testify that Willy admitted that he would never have left all his possessions to Linda if he were not dependent on her for his wellbeing.
• C) There is a presumption of undue influence based upon the age difference between Linda and Willy.
• D) Linda is legally entitled to a presumption of no undue influence because she was Willy's girlfriend at the time the will was written.
• E) Linda is legally entitled to a presumption of no undue influence only if she can establish through the testimony of a disinterested witness that Willy had asked her to marry him.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders but instead reinvested in the business or used to pay off debt.

WACC

The Weighted Average Cost of Capital is a metric that calculates a company's cost of capital, with each capital category being weighted proportionally.

Capital Budgeting

The process by which investors or managers decide which capital investment projects - like new machinery or expansion plans - to undertake, based on potential profitability and risk analysis.

Opportunity Cost

A cash flow that a firm must forego to accept a project. For example, if the project requires the use of a building that could otherwise be sold, the market value of the building is an opportunity cost of the project.