Joe Is in the Process of Assembling Land for Ace

question 147

Essay

Joe is in the process of assembling land for Ace Contractors Ltd.to build a supermarket.He entered into a contract with the seller,Sam.Joe did not disclose that he was acting for someone else when he entered into the contract.Explain Sam's rights when the contract is breached and he learns that Joe was acting for Ace.

Understand and identify different financial planning methods and their applications.

Analyze the implications of top-down and bottom-up planning approaches.

Grasp the concept and calculation of sustainable growth rate.

Interpret financial statements and execute financial forecasting.

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Definitions:

Neglected-firm Effect

The phenomenon where lesser-known or less-followed stocks generate higher abnormal returns than their well-followed counterparts.

Excess Returns

The return on an investment that exceeds a benchmark or risk-free rate, indicating the additional compensation for taking on risk.

Passive Fixed-income Indexes

Indexes that track a set of fixed-income securities, used as benchmarks for passive bond investment strategies.

Actively Managed Bond Funds

Bond investment funds where fund managers actively make decisions on buying and selling bonds to outperform the market or reach specific investment goals.