A co-owner of a property, held in joint tenancy, conveyed his interest to a buyer by general warranty deed signed only by the co-owner. Which of the following statements is TRUE regarding this transaction?
A. The general warranty deed conveyed the ownership interest of all co-owners.
B. The rights of the other co-owners were not transferred by the general warranty deed.
C. Owners cannot convey their interest without the consent of the co-owners.
D. The warranty deed made no warranties to the new buyer.
Answer: B. The rights of the other co-owners were not transferred by the general warranty deed.
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Broker Peder listed the Kleins' property for sale under an exclusive-right-to-sell agreement. Today, Toby, one of Peder's salespeople, obtained a signed offer to purchase the property along with a certified check for 5 percent of the purchase price as earnest money. What should Toby do with the earnest money check?
A) Give it to the Kleins. B) Hold it until closing. C) Deposit the money in his personal account. D) Give the money to Peder for deposit in the brokerage trust account.
A firm expects growth next year to be 10%. Its sustainable growth rate is 12%. Which of the following is true?
A) The firm will need to raise additional debt such that its debt to equity ratio will increase. B) The firm may be able to keep its debt to equity ratio the same by reducing dividends (assuming they are projected to be high enough). C) The firm will need to raise additional capital through a stock issue. D) The firm will have excess cash to increase dividends, pay back debt, or repurchase equity.