Use the Following Information to Answer the Question(s)below

question 4

Multiple Choice

Use the following information to answer the question(s) below.
Frank Dewey Esquire from the firm of Dewey,Cheatum,and Howe,has been offered an upfront retainer of $30,000 to provide legal services over the next 12 months to Taggart Transcontinental.In return for this upfront payment,Taggart Transcontinental would have access to 8 hours of legal services from Frank for each of the next 12 months.Frank's normal billable rate is $250 per hour for legal services.
-Assuming that Dewey's cost of capital is 12% EAR,then the IRR of his retainer offer is closest to:

• A)-39.3%.
• B)-3.3%.
• C)20.0%.
• D)39.3%.

---

Definitions:

Sexual Attachment

A form of emotional bonding or connection between individuals that incorporates sexual intimacy or attraction.

Jealousy

A complex emotion that often involves feelings of insecurity, fear, concern, and envy over relative lack of possessions, status or something of great personal value.

Oedipus Complex

A psychoanalytic theory from Freud that describes a child's feelings of desire for the opposite-sex parent and jealousy and rivalry with the same-sex parent.

Freudian Stage

Refers to any of the developmental phases in Sigmund Freud's theory of psychosexual development, each characterized by fixation on a different pleasure area of the body.