Because the law of the foreign country is the only law that can be enforceable contracts are only as good as the backing of the country's backing and are only binding in that instance. A country can stop all transactions from that business if they file lawsuit on that country (Melvin, 2011). What factors could work against CadMex's decision to grant sublicensing agreements? An organization that has too many sublicensing agreements and does not have sufficient sub paragraphs could find difficulties enforcing the sublicensing agreement. The organization could experience lawsuits if any of the contracted workers have any problems and could leave the organization liable for damages When the local customs and laws conflict with the customs and laws of an organization operating abroad which should prevail?
The expected present value of potential cash flow is $10.76 if the drug is licensed. However, in this case Merck would discontinue the phase 3 study if the drug passed phase 2 for weight loss only. This is because under this scenario Merck would lose more money to continue phase 3 than not to continue phase 3. Question 5: According to the tree in Exhibit 1, the expected payoff without the information of whether it will pass phase 1 is 13.98. If Merck knows the drug will fail phase 1, it will never incur the 30M cost in phase 1.
Spaulding v. Morse (369): stop yearly payment to trust during time in armed services - enforce according to terms if unambiguous, consider context if terms are ambiguous - not only context at time of contract formation, but also what happened AFTER ⇨ changed circumstances - why look at context? very few contingent contracts ➢ trade-off: value of completeness vs. value of time ➢ impossible to conceive of all contingencies C. Parol Evidence Rule
2. What might go wrong in the future? The Internal Venture concept requires a lot of capital funding from Telecam so, if this concept has been promoted but most venture funded turn to be failure, the financial standing could be in trouble. Secondly, when several internal ventures have been set up there is a chance that the company could turn to fragment organization. Thirdly, the stock option which intend to provide tremendous potential return to the founder of each Internal Venture, however, if the stock price of Telecam tumble down, the stock option will no longer an effective incentive to the founder member.
This high ROFE exceeds the hurdle rate that the company establishes to accept a project. As a result, from an incremental valuation, the company should accept this project. However, this method has deficiency, because according to Mr. Peters, the assumption for capital spending of this project ($20 million) is inappropriate, since the Chiffon project will use Jell-O buildings and facilities extensively. Then, the allocation of agglomerator and building should be also included in Chiffon project. Therefore, the company should not use the incremental method to value the Chiffon project since Mr. Peters argues that it has the wrong assumption.
Steele and Faust is an incidence of unilateral mistake on the part of the seller. The Chaney estate had mistaken the material fact of the property size for sale in the contract, which would have substantially increased the price. It is unfortunate that the contract was already signed before the actual property size was discovered because in most cases with unilateral mistakes, the mistaken party is usually not permitted to rescind the contract. There is one way that the Chaney estate may be able to avoid the loss if and when taken to court if the loss is found to be unconscionable. Otherwise the sale of the Chaney estate was sold at bargain to the Drs.
Is the real estate subsidiary a good idea? If the managers buy more stock, what is the appropriate price? There are two major concerns which are gaining competitive advantage and determining comparable valuations. Brazos should allow the company to sell the managers some stock of the business to benefit the managers. But the amount that a manager can hold stocks should be limited because the ownership would be split in this way as it is not good for Brazos itself to decrease its ownership.
• Significant debt issue is a concern as it is risky and in conflict with the company’s culture and managerial of low-risk attitude. Hence, 20% debt-to-capital restructure is recommended as it is not significant amount as opposed to other alternatives. • Other effects, including financial distress, signaling, investment and clientele considerations, are difficult to measure but predictable to balance out to a mildly optimistic set of considerations. • An alternative approach is to increase debt in order to use the proceeds to pay dividends, however it is not recommended. In conclusion, if Hill Country were to engage in the leveraged recapitalization, this report would highly recommend the 20% debt-to-capital ratio be used to repurchase shares.
Rationally the logic is sound, we take on debt in order to get a good paying job which we can use to pay it back later. Unfortunately it’s not that simple anymore. College used to be the place you go in order to get better jobs than the rest of society, kind of like a shortcut to success. Nowadays that is no longer the case, in fact, the opposite is true. If you don’t go to college, you are almost guaranteed to not get a job, or if you do it will only be a minimum wage job, with no job security, that won’t even pay for the cost of living.
Some of the Pros of Universal Health Care is if you was to lose your job, the health coverage would go with it. To me, that does not seem fair at all, but that is just the law. Another pros would be if we had Universal health care if you ended up losing your job you would not get service. Which to me is not right, but I guess that is the thing about having it universal. Some of the cons of it would be if the United States went universal we would lose out on a lot of companies.