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vredina [299]
4 years ago
10

Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock. The incremental value of the acquisition is $2,500. Firm X

has 2,000 shares of stock outstanding at a price of $16 a share. Firm Y has 1,200 shares of stock outstanding at a price of $40 a share. What is the actual cost of the acquisition using company stock?
Business
1 answer:
UkoKoshka [18]4 years ago
5 0

Answer:

$34,789

Explanation:

Worth of stocks = $35,000

Incremental value of the acquisition = $2,500

Stock outstanding of Firm X = 2,000

Price per share of Firm X = $16

Stock outstanding of Firm Y = 1,200

Price per share of Firm Y = $40

Now,

Number of shares issued =  35,000 ÷ 40

or

= 875 shares

Value after merger = (Value of Stock x + Value of Stock Y + Synergy)

= (1200 × 40) + (2000 × 16) + 2500

or

= $82,500

Number of Stock Outstanding after merger  = ( 1,200 + 875 )

= 2,075

Thus,

Value per share after merger = $82500 ÷ 2,075

= 39.759

Therefore,

Actual cost of acquisition

= Value per share after merger × Number of shares issued

= 875 × $39.759

= $34,789

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Which of the following transactions are included in gross domestic product, and by how much does the GDP raise?
seropon [69]

Answer:

A. Smith pays a carpenter $50,000 to build a garage.  ⇒ INCLUDED, increases GDP by $50,000 because Smith paid for the garage.

B. Smith purchases $10,000 worth of materials and builds a garage, which is worth $50,000.  ⇒ INCLUDED, increases GDP by $10,000 only because Smith built the garage himself.

C. Smith goes to the woods, cut down a tree, and uses the wood to build himself a garage that is worth $50,000.  ⇒ NOT INCLUDED, no services or goods were exchanged, it is the same as growing your own food.

D. The Jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000.  ⇒ INCLUDED, increases GDP by $500,000 because the Joneses purchased anew house.

E. You purchase a used computer from a friend for $200.  ⇒ NOT INCLUDED, only new goods and services are included.

F. Your university purchases a new mainframe computer from IBM, paying $25,000.   ⇒ INCLUDED, increases GDP by $25,000 because the university purchased a new computer.

G. You win $100 in an Atlantic City casino. ⇒ NOT INCLUDED, casino earnings or lottery earnings are not considered new products or services.

5 0
3 years ago
Bok advises campus officials (and students) simply to "ignore" offensive words, flags, and so forth (para. 13). Do you agree wit
Ugo [173]

Answer: 1. I do not agree with this advice.

2. I would rather propose dialogue as a better means to resolve situations where a person feels offended by the actions of others.

Explanation:

HOW WE OUGHT TO RESPOND TO THE OFFENSIVE ACTIONS OF OTHERS

Offensive Misconducts are actions intended to hurt others, perpetrated without consideration to the feelings of others. They can be carried out in the workplace, at school, at home, and in other social settings. These acts of misconduct can come in the form of bullying, racist or sexist comments, false accusations, physical attacks, threats, etc.

When faced with offensive misconduct, silence is not the best approach. Silence means consent and offensive misconduct are not meant to be condoned. They should rather be addressed using appropriate conflict resolution skills.

One such very important skill is dialogue. Dialogue is an approach that seeks to discuss the matter with the offender. The offended does not take on an offensive approach. He rather explains how the action affects him. He asks vital questions about the intentions of the offender. It might well be that the action might not have been aimed at being offensive. When addressing this issue, it is also important that an attitude of calmness be maintained by the person seeking to resolve the conflict.

Active listening should also be maintained when the other party is trying to explain himself. This would help the offended understand the viewpoint of the offender.

When a person who feels offended continues to ignore an offensive action, this might make him start nursing resentment, which might further lead to retaliatory actions. That is why it is very important to address offensive actions immediately instead of condoning them.

After taking the necessary actions, if the offender persists in his actions, the matter should be reported to an authority.

7 0
3 years ago
If planned aggregate spending in an economy can be written as pae = 15,000 + 0.6y - 20,000r, and potential output equals 36,000,
soldier1979 [14.2K]

This is hard lollllllllllll

6 0
3 years ago
A company has an investment project that would cost $10 million today and yield a payoff of $15 million in 4 years.
Maslowich
Is the question, what is the Annual Rate of Return?
P=A•e^rt
15=10•e^4r --> ln (e^4r) = ln (3/2)
4r = 0.4055
r = 0.1014
4 0
3 years ago
14. in 2018, cities including seattle and san francisco passed laws banning the use of plastic disposable straws because they ar
mr Goodwill [35]

In the above situation, the potential costs that may be derived will be,

  1. Straws made of alternative materials lack the flexibility of plastic straws. This makes it harder for people with disabilities, seniors, and children to use them.
  2. Compostable straws are an alternative to disposable straws. For compostable straws to break down properly they need to be disposed of in a special commercial composter, an infrastructure that needs to be created.
  3. Alternatives to disposable straws do not need fossil fuels to be recycled.

Therefore, the options B, C and D hold true.

<h3>What is the significance of potential costs?</h3>

The potential costs can be referred to or considered as the costs that may have a contingency of being incurred by a producer upon the effects of some external factors.

Therefore, the options B, C and D holds true and states regarding the significance of potential costs.

Learn more about potential costs here:

brainly.com/question/10963256

#SPJ4

The question seems to be incomplete. It has been added below for better reference.

14. In 2018, cities including Seattle and San Francisco passed laws banning the use of plastic disposable straws because they are harmful to the environment (because plastic does not easily biodegrade) and to marine life (which ingest straws that end up in the ocean). Opponents point out that such bans may result in unintended monetary cost as well as external cost.

Which of the following describes potential costs that may arise as a result of these new laws? Select all that apply.

A. Alternatives to plastic straws cost at least 10 times more than the current price of plastic straws.

b. Straws made of alternative materials lack the flexibility of plastic straws. This makes it harder for people with disabilities, seniors, and children to use them.

C. Compostable straws are an alternative to disposable straws. For compostable straws to break down properly they need to be disposed of in a special commercial composter, an infrastructure that needs to be created.

D. Alternatives to disposable straws do not need fossil fuels to be recycled.

4 0
2 years ago
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