Answer: Producers driven by the profit motive seek to reduce their competition
Explanation: The government need to regulate the free market to protect competition because producers driven by the profits motive seek to reduce their competition. The government needs to regulate the free market to protect competition when companies form monopolies, the consumers enjoy when there is competition among producers of products as there is variety to choose from, reasonable prices would be charged etc.
Answer:
We are told that Firm A has 10 million Shares outstanding, Currently trading at $ 5/share.
They adopt Poison pill to avoid possible Hostile Acquisitions.
What then is poison pill?
Poison Pill: Poison Pill technique is used to avoid the acquisitions which may take place due to the hostile takeovers. This is a defensive mechanism used by the target company to prevent the bidders from takeover. At that time it allows the shareholders to buy more shares at a discount , if one shareholders purchase the 20% of the shares.
Here, the posison pill allows the shareholders to purchase additional share per share owned. This allows the shareholders to purchase their new shares at a price of $2/sahre if a hostile bidder purchases 20% of the equity of firm.
If a bidder buys 20% of Firm A, this allows the other share holders to buy the shares at discount which would dilute the bidders interest and increase the cost of the bid.This makes the bidder to withdraw from the decision to takeover. He has to negotiate with board inorder to revoke the plan. The Board of Directors revokes the plan by attaching option or warrant to the existing shares.
So, the Bidder may withdraw the plan to takeover due to increase in the cost of the bid due to the purchases made by the othershareholders at discount.
Explanation:
Answer:
$
Issued common stock (87,000 x $14) = 1,218,000
Common stock repurchased (24,000 x $17) = <u>408,000</u>
Total stockholders' equity <u> 810,000 </u>
Explanation:
Total stockholder's equity is the par value of issued common stock minus the par value of common stock repurchased.
Answer:
1. Choose a Restaurant Concept and Brand.
2. Create Your Menu.
3. Write a Restaurant Business Plan.
4. Obtain Funding.
5. Choose a Location and Lease a Commercial Space.
6. Restaurant Permits and Licenses.
7. Design Your Layout and Space.
8. Find an Equipment and Food Supplier
Answer:The capital cost is $1 million
Explanation: This is one time expenses on production if goods and services , purchase of land and construction. It is the total cost required to bring a business to a commercially operable status.