Answer:
her current net worth is $75,500
Explanation:
The computation of the her current net worth is shown below:
As we know that
Net worth is
= Total assets - total liabilities
= ($50,000 + $500 + $100,000) - ($75,000)
= $150,500 - $75,000
= $75,500
Hence, her current net worth is $75,500
We simply deduct the liabilities from the asset to determine the net worth
Answer:
d. defense tactics make the costs of a takeover lower.
Explanation:
There's a take over attempt when a company is faced with a hostile takeover attempt.
Defense can be either pre offer takeover or post offer takeover.
In pre offer takeover defense, companies put mechanisms in place to discourage takeover attempts.
Pre takeover defense mechanisms include:
1. Golden parachute: this benefits the managers of a company. It is an agreement where managers are compensated lucratively if they leave the company being targeted for a takeover when there's a change in corporate control.
2. Fair price amendments: this sets a bidding value floor for a target company. This makes the company more expensive
3. Staggered board : this is when its impossible to change all the members of boards of a company.
4. Poison pill
5. Poison put
Post take over defense mechanism usually are put in place after a takeover attempt. They include:
1. White knight defesne : The takeover firm invites another company to purchase it in place of the firm planning an hostile takeover. This can lead to bidding and counter bidding by the third firm and the firm planning the hostile take over. This can eventually leads to winners curse. This usually increases the cost of takeovers
2. Litigation
Not all take over defense tactics are usually effective. Generally, preoffer take over tactics are usually recommended.
Answer: Higher than the effective interest amount in the early years and less than the effective interest amount in the later years.
Explanation:
Answer:
Desert Company
The amount that Desert should record as the historical cost of the equipment is:
= $170,993.
Explanation:
a) Data and Calculations:
Value of stock exchanged = $150,000 (3,000 * $50)
Fair value of equipment = $170,993
Gain from exchange of Equipment for shares = $20,993
b) The quoted fair value of Jungle's equipment should be used to record the historical cost in the financial statement of Desert Company. This value represents the only verifiable value. This value should then be compared to the value of the Desert shares exchanged with Jungle to determine if there is a loss or a gain from the exchange.
Answer:
$1,692
Explanation:
Data provided in the question:
Number of shares purchased = 100
Cost of stock = $30 per share
Commission = $29
Selling price per share = $45
Commission for selling = $29
Earned dividends = $2.50 per share
Now,
Total Return
= Number of Shares × (Sale Price - cost + Total dividends) - Total Commissions
or
Total Return = 100 × ($45 - $30 + $2.50) - (2 × $29)
or
Total Return = $1750 - $58
or
Total Return = $1,692
