PrintQuik Inc. has a cost of equity of 14% and a cost of debt of 6%. If the firm is financed with 70% equity and 30% debt, and they operate under the conditions of a perfect capital market, what is the firm's average cost of capital?

Who may legally obligate business in a LLC?

What will be an ideal response?

Mary has a contract to buy Jena's house. The contract says that Mary's obligation to go through with the purchase is contingent upon Mary selling the house she currently owns. An additional clause in the contract makes Mary's purchase contingent on the seller's landscaping the front yard "to Mary's satisfaction." Can Mary reject the contract based on dissatisfaction with the landscaping?

a. Yes, if her dissatisfaction is actual, honest and in good faith. b. No, this is an illusory condition and Mary is bound to the contract. c. No, if an average, reasonable person would be satisfied with the landscaping Mary is bound to the contract. d. No, if the landscaping meets the estoppel standard Mary is bound to the contract.