Answer:
Goodwill is $ 50,166.00
Explanation:
Goodwill is the excess of purchase price consideration over the fair value of net assets of the business acquired.
Purchase price consideration is the proceeds received by the owners of the business acquired in a business combination arrangement like this.
The net assets is the fair value of assets minus the fair value of the liabilities.
Purchase price consideration is $97,109
Net assets =$65,893+$9,736-$28,686=$ 46,943.00
Goodwill=$97,109-$46,943.00 =$ 50,166.00
Answer:
The plant would have to work 8.33 hours
Explanation:
Initial productivity:
100 parts were produced in 1 hour
Percentage increase in productivity = 20%
New productivity:
100 + (100 × 0.2) = 100 + 20 = 120
120 parts would be produced in 1 hour
Number of hours the plant would have to work to produce 1000 parts = 1000/120 = 8.33 hours
Answer:
The correct answer is option C.
Explanation:
The opportunity cost of any economic decision is the cost of giving up its alternative. We are aware that we have limited resources with alternative uses and we have to use these resources to satisfy alternative needs and wants. In order to increase spending resources on one thing, we need to decrease spending on its alternative.
Here, the parking spot on the driveway can be used for personal use or can be used for renting. The opportunity cost of using the spot for personal parking is the money that could have been earned by renting it to others.
Answer:
Explanation:
Net Income = 20m
Sales = 100m
Debt-equity ration = 40%
Asset turnover = 0.60
A)
Profit Margin = Net Income / Sales = $20 million / $100 million = 20%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%
B)
Debt-equity ratio = 60%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%
As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)
<span>The proactive efforts of company
managers to boost the stock price of the company should, of a necessity, include
such actions as raising the company's dividend each year (ideally by at least
$.05 per share) and repurchasing shares of common stock.</span>
