1. Ben enters into a contract to operate a Hamburgal franchise, which Hamburgal agrees to support as long as Ben maintains his business license. Hamburgal’s duty to perform i
a. not a condition.
b. a condition precedent.
c. a concurrent condition.
d. a condition subsequent.
2. Jeffries, Inc. has determined that the optimal capital structure is 60% equity. Assuming that the firm has $12 million in retained earnings, at what size capital structure will the firm run out of retained earnings?
a. There is insufficient information to determine an answer.
b. $50 million
c. $20 million
d. $25 million
e. $12 million