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3 years ago

A primary reason for a firm to pursue an acquisition is to:

Business

1 answer:

Strike441 [17]3 years ago

8 0

Answer:

c. achieve greater market power.

Explanation:

Acquisitions to meet a market power objective generally involve buying a supplier, a competitor, a distributor, or a business in a highly related industry. Though a number of firms may feel that they have an internal core competence, they may be unable to exploit their resources and capabilities because of a lack of size.

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Taunton's is an all-equity firm that has 152,000 shares of stock outstanding. The CFO is considering borrowing $245,000 at 6 per

dezoksy [38]

Answer:

The value of the firm is $1,773,333

Explanation:

Calculation of Value of each share

Amount borrowed (A) $245,000

No. of shares repurchased (B) 21,000

Value for each share (C) $11.67

No. of shares outstanding after repurchase(A) 131,000

(152,000 - 21,000)

Value for each share(B) $11.67

Equity value after repurchase(A*B) $1,528,333

Add: Amount borrowed $245,000

Firm value after this transaction $1,773,333

7 0

2 years ago

After an extensive advertising campaign, the manager of a company wants to estimate the proportion of potential customers that r

spayn [35]

Answer:

1. Referring to Problem , the manager wants to know the value of the population so the manager uses the sample to estimate the population proportion.

a. True

2. Referring to Problem , point estimate of the population proportion is = 0.45.

a. True

3. Referring to problem , the sample proportion is = 0.45.

b. False

4. Referring to Problem, the manager wants to know the value for the population so the manager uses the sample to estimate the population value

b. False

5. Referring to Problem , the parameter of interest is 54/120 = 0.45.

a. True

Explanation:

a) Data and Calculations:

Sample of potential consumers = 120

Proportion of the sample who recognize the product = 54

Confidence level = 95%

Confidence interval = 0.36 to 0.54

Point estimate = 54/120 = 0.45

b) A point estimate of a population parameter estimates the population parameter as a single value. The point estimate of the sample mean, x, is also the point estimate of the population mean, μ. To get the sample proportion, one needs to know the population value. The sample value divided by the population value gives the sample proportion.

7 0

2 years ago

Sanjay is the manager at a restaurant and offers to promote Linda, a waitress at the same restaurant, in return for sexual favor

Tresset [83]

Answer:quid pro quo harassment

Explanation:It is sexual and involves exchanges in a workplace.

3 0

3 years ago

A company has the following liabilities at year end:

lisov135 [29]

Answer:

B) $16,000

Explanation:

Current liabilities are debt that must be paid within a 12 month period.

The total value of the notes payable is $355,000, but only $16,000 is due within 12 months. The $175,000 of short term debt has been refinanced and reclassified as long term debt. The $25,000 of deferred tax liability is also non current.

4 0

3 years ago

An existing customer of an agent who is registered in State Z contacts the agent to inquire about selling 1,000 shares of ABCC C

MissTica

Answer: considered to be an offer to buy made by the agent

Explanation:

An offer to buy simply means a proposal made by a buyer to buy an asset, and this becomes legally enforceable once the person who intends to buy the asset accepts the offer made by the seller.

In this case, the agent has contacted the existing client to know if he is interested in selling these shares and once the seller agrees, the shares will be sold at an agreed price.

5 0

3 years ago