![The Legal Environment of Business: Text and Cases (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305967304/9781305967304_largeCoverImage.gif)
The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 3CT
Summary Introduction
Case summary:A person D was employed in the company N. The person D, while working on a forklift, moved out of the seat and unintendedly stepped on vehicle’s active gearshift. Due to this, the forklift moved backward causing injuries to the person D. A lawsuit was filed by the person D against the manufacturer of forklift M and the company N, claiming under product liability. The manufacturer M in defense stated that the company N altered the vehicle after delivery and disabled the security switch. The security switch was installed to prevent accidents caused by sudden use of an active gearshift.
To Find: The person D’s success in an action against the company N.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
XYZ stock price and dividend history are as follows:
Beginning-of-
$ 130
Dividend Paid at
Year
Year Price
Year-End
2021
$ 2
2022
2023
153
2
2024
128
133
2
2
An investor buys five shares of XYZ at the beginning of 2021, buys another two shares at the beginning of 2022, sells one share at the
beginning of 2023, and sells all six remaining shares at the beginning of 2024.
Required:
a. What are the arithmetic and geometric average time-weighted rates of return for the investor?
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Arithmetic time-weighted average returns
Geometric time-weighted average returns
%
%
b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2021, to January 1, 2024.
Note: Negative amounts should be indicated by a minus sign.
Date
01/01/2021
01/01/2022
Cash Flow
01/01/2023
01/01/2024
b-2. What is the dollar-weighted rate of return? (Hint. If your calculator cannot calculate…
Consider the following two banks:
Bank 1 has assets composed solely of a 10-year, 11.50 percent coupon, $1.5 million loan with a 11.50 percent yield to maturity. It is
financed with a 10-year, 10 percent coupon, $1.5 million CD with a 10 percent yield to maturity.
Bank 2 has assets composed solely of a 7-year, 11.50 percent, zero-coupon bond with a current value of $1,108,283.85 and a maturity
value of $2,374,515.87. It is financed with a 10-year, 5.75 percent coupon, $1,500,000 face value CD with a yield to maturity of 10
percent.
All securities except the zero-coupon bond pay interest annually.
a. If interest rates rise by 1 percent (100 basis points), what is the difference in the value of the assets and liabilities of each bank?
Note: Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter the answers in
dollars, not millions of dollars. Round your answers to 2 decimal places. (e.g., 32.16)
Before Interest
Asset Value
After Interest…
Problem 3
Simple Bivariate Regression
Consider the following bivariate regression model:
NAMEUIN
Page 1 of 2
=
Hourly Wages, Bo+B₁Education; + &
where Education measures the years of experience at the job for an individual and
Hourly Wage is the hourly wage in dollars. The subscript i indexes various people. You run
a bivariate OLS regression to estimate Bo and B₁.
Suppose you estimate B = 10 and B
a.
0
= 2
How do you interpret the estimates ßo and ß₁ in this context? (3 points)
1
b. Define the terms "predicted/fitted value" and "residual”. (3 points)
c. Suppose that for some individual, the predicted value of Hourly Wage is $20, and
the residual is 2. What is the actual Hourly wage for the individual? Show your
work. (4 points)
d. Suppose that some individual has 10 years of Education, and his actual hourly wage
is $35. What is the predicted outcome and residual for this individual? Show your
work. (5 points)
Chapter 7 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
Knowledge Booster
Similar questions
- TIME TO REACH A FINANCIAL GOAL You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round UP to the nearest year. (Example 5.01 years = 6 years) Your answer should include numerical value only.arrow_forwardDiscuss at least three important elements that you believe should be included in a Code of Ethics based on a job in business major or career choice. Explain why you think they are important and should be included.arrow_forwardYou plan to retire in 30 years. • In 50 years, you want to give your daughter a $500,000 gift. • You will receive an inheritance of $200,000 in 25 years. • You think you will want $50,000 per year when you retire for 30 years (the first withdrawal will come one year after retirement). • You will begin saving an amount to meet your retirement goals one year from today. Required: • If you think you can make 9% on your investments, how much will you need to save each year for the next 30 years to meet your retirement goals?arrow_forward
- Multiple Choice 2-32 Educational Incentives (LO 2.14) Wendy is a single taxpayer and pays tuition of $7,800 in 2021. Her 2021 AGI is $66,000. What is the amount of Wendy's tuition deduction? X a. $2,000 O b. $0 O c. $3,733.33 O d. $4,000 O e. $7,800arrow_forwardAn initial $3300 investment was worth $3820 after two years and six months. What quarterly compounded nominal rate of return did the investment earn? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Nominal rate of return % compounded quarterly.arrow_forward6:35 nvas.liberty.edu < 72% i You must post before seeing replies. Edit history will be available to instructors. ☑ Due Feb 13 33 Replies (33) 50 points Discussion Thread: How to Look at the Bible After reading the assigned chapters in Everyday Bible Study (Chapters 1-5), create a learning log that lists 10 quotes from the assigned reading that highlight either a concept that resonated with you or a concept that represents new learning for you. Following each of these quotes, you must provide a 3-5 sentence explanation of how the selected quote represents either what resonated with you or this new learning. For an example of this type of thread, please see the provided example. Pleas ◄ Previous cussion Assignment instructions ✓ and the ||| Next ▸arrow_forward
- Problem 1 The Core Model Suppose you are interested in studying the effect of workers' training (measured by the number of training hours) on employee productivity (measured by output per hour). a. What is the dependent and independent variable in this setting? (2 points) b. How would you write this relationship using the Core Model? (3 points) C. Do you expect the slope coefficient ẞ₁, (which shows relation between teacher's experience and test scores) to be positive or negative? Explain your reasoning. (5 points) d. Name any two factors that are likely included in the error term of your model? (5 points)arrow_forwardProblem 2 Endogeneity Suppose you are interested in how social media usage affects students' academic performance. Consider the following model: GPA; = ßo + ß₁Social Media Hours; + ɛ; where GPA, is the grade point average of a student and Social Media Hours; measures how many hours the student spends on social media every week. Each student is denoted by the subscript i. a. What is the dependent variable Y in this setting? What is the independent variable X in this setting? (4 points) b. What does Bo C. What does ẞ1 = 3 mean? (2 points) = 0.2 mean? (3 points) d. What is the condition for the independent variable Social Media Hours; to be endogenous? (5 points) e. Is the independent variable likely to be endogenous? Why or why not? (3 points) f. If yes, describe a scenario where the independent variable is endogenous. (3 points)arrow_forwardAn initial $3300 investment was worth $3820 after two years and six months. What quarterly compounded nominal rate of return did the investment earn? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Nominal rate of return % compounded quarterly.arrow_forward
- Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.arrow_forwardMultiple Choice 2-32 Educational Incentives (LO 2.14) Wendy is a single taxpayer and pays tuition of $7,800 in 2021. Her 2021 AGI is $66,000. What is the amount of Wendy's tuition deduction? X a. $2,000 O b. $0 O c. $3,733.33 O d. $4,000 O e. $7,800arrow_forwardDo a report to promote an innovative product/service within an organization of your choice. In your assignment, you need to focus on the below: 1. Give a brief introduction of the innovative product/service you are thinking about within an organization of your choice. 2. Analyze how you are going to promote your idea internally to your colleagues (e.g. meetings, presenting and disseminating the information). 3. Explain how you are going to convince them that this product/service is applicable and that it will create a competitive advantage in the market. 4. Refer to a similar product/service that your competitors have and analyze how the competitors’ product can be considered as a threat to your new product/service. 5. Estimate how much will the whole procedure cost to the business. 6. In your conclusions, describe how the new product/service will influence the whole organization’s environment. 3000 words and include and introducion, conclusion and references.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
- International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337407137/9781337407137_smallCoverImage.gif)
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337386494/9781337386494_smallCoverImage.gif)
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134474021/9780134474021_smallCoverImage.gif)
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781947172548/9781947172548_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259929441/9781259929441_smallCoverImage.gif)
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9780357026595/9780357026595_smallCoverImage.gif)