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Harrizon [31]
2 years ago
14

Total transaction costs, based on the assumptions provided, are expected to be:

Business
1 answer:
Jobisdone [24]2 years ago
8 0

Based on the costs of acquisition of Walmart by Amazon, the total transaction costs would come to B. $22,002.

<h3 /><h3>What are the total transaction costs?</h3>

Equity financing cost:

= 5.5% x 241,350.75

= $13,274.29

Debt financing cost:

= 1.5% x 241,350.75

= $3,260.26

Other transaction costs:

= $3,000

Target debt redemption premium:

= 70,242 x 3%

= $2,107.26

The total transaction costs are:

= 13,274.29 + 3,260.26 + 3,000 + 2,107.26

= $22,002

Find out more on acquisition costs at brainly.com/question/14300655

#SPJ1

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Answer:

Credit, $60,000

Explanation:

Given,

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Face value $60,000 = Principal value.

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2 years ago
How do I become a business man?​
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3 years ago
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Commercial paper investments are ___. (Select all that apply.)
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Answer: Less than one year, guaranteed returns , and a money market product

What I put for my answer think its right

Explanation:

7 0
3 years ago
A researcher wants to test the order of integration of some time series data. He decides to use the DF test. He estimates a regr
pav-90 [236]

Answer:

a) H0: u = presence of a unit root

   HA: u ≠ presence of a unit root  ( i.e. stationary series )

b) t stat = -0.064

c) We will reject the Null hypothesis and the next step will be to accept the alternative hypothesis

d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise

Explanation:

<u>a) stating the null and alternative hypothesis</u>

H0: u = presence of a unit root

HA: u ≠ presence of a unit root  ( i.e. stationary series )

<u>b) performing the test </u>

critical value = -2.88

T stat = coefficient / std error

          = -0.02 / 0.31  = -0.064

c) From the test, the value of T stat > critical value we will reject the Null hypothesis hence the next step will be to accept the alternative hypothesis

d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise

   

5 0
3 years ago
You're considering an investment that you expect will produce an 8% return next year, and you expect that your real rate of retu
sveta [45]

Answer:

Explanation:

Using Fisher equation <u><em>(Which is estimating the financial mathematics and economics relationship among real interest rates nominal interest rates under inflation.) </em></u>which goes like this

1+i=(1+r)(1+\pi _{e} )

where

i = nominal interest rate\\e = real interest rate\\\pi _{e}  = expected  inflation rate

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