Answer:
<u>Diversify business operations and investments </u>
Explanation:
A merger refers to a corporate agreement between two firms agreeing to share resources and skills jointly or in a collaboration, with an objective of gaining a greater market share collectively.
Conglomerate merger refers to a form of merger agreement wherein, the two merging firms deal in completely unrelated products or services or operate in different industries.
The benefits such a merger yields are, increment in the market share, business diversification i.e dealing in new products and exploring new markets, cross selling of products and synergistic benefits.
Answer:
D1 = $3.50
D2 = $3.50
D3 = $3.50
Ke = 10% = 0.1
Po = <u>D1</u> + <u>D2</u> + <u>D3
</u>
(1+ke) (1+ke)2 (1+ke)3
Po = <u>$3.50</u> + <u>$3.50</u> + <u>$3.50
</u>
(1+0.1) (1+0.1)2 (1+0.1)3
Po = $3.18 + $2.89 + $2.63
Po = $8.70
None of the above
Explanation:
In this scenario, we need to discount the dividend in each year by the required at rate of return of 10%. The aggregate of the price obtained as a result of discounting in year 1 to year 3 gives the current market price.
Answer: C. Style modification creates planned obsolescence.
Explanation:
Planned obsolescence also referred to as the premature obsolescence or built-in obsolescence is when a product is designed with a limited useful life which is artificial, so that the product later becomes obsolete after a period of time. It should be noted that style modification creates planned obsolescence as there's always need to try out new things and evolve.
Answer:
The entry will be,
Cash 461461 Dr
Discount on Bonds Payable 18539 Dr
Bonds Payable 480000 Cr
Explanation:
The bonds are being issued at a discount because the rate of interest offered by the bonds is less than that is prevailing in the market. Thus, the bonds will be issued at a discount of,
Discount on Bonds Payable = 480000 - 461461
Discount on Bonds Payable = 18539
The entry will be to record the receipt of cash by debiting the cash account by 461461 and debiting the discount on bonds payable by 18539 and recording a credit against these debits of 480000 as bonds payable
Answer:
Consumer Perception.
Explanation:
Consumer perception is part of consumer behaviour associated with how purchase are made by customers. Particularly the sensation process. The spraying of the perfume in this scenario was designed to sensitize potential buyers who may be walking buy or be in the vicinity.
