Answer:
<em>Therefore the gain or loss to the current shareholders of Goodday if the merger provides no synergy is -$10
</em>
Explanation:
Given:
<em>The Total debt remains same after merger at Pre-merger value = $80 + $40 = $120
</em>
<em>The Value of entities together in Economic state 1 = $160 + $20 = $180
</em>
<em>
Net equity in economic state 1 = Value of entities – total debt
</em>
<em>
= $180 - $120 = $60
</em>
<em>Then,</em>
<em>
The Value of entities in Economic state 2 = $40 + $80 = $120
</em>
<em>
Net equity in economic state 2 =
</em>
<em>= $120 - $120 = $0
</em>
<em>
The Both states are equally possible.
</em>
<em>
Expected value of combined entity = ($60 + $0)/2 = $30
</em>
<em>
Market value of Goodday equity before merger = $40
</em>
<em>
Synergy effect = Expected value of combined entity - Market value of Goodday equity before merger= $30 - $40 = -$10
</em>
Answer:
(a) $24 per unit; $136,000
(b) $544,000
Explanation:
(a) Computation of variable cost per unit and the total fixed cost
Let Y1 = $424,000 and Y2 = $640,000,
X1 = 12,000 and X2 = 21,000
variable cost per unit (b) = (Y2 - Y1) ÷ (X2 - X1
)
= ($640,000 - $424,000) ÷ (21,000 - 12,000)
= $24 per unit
Total fixed cost:
Y2 - bX2 = Y1 - bX1
640000 - 24 × 21000 = 424000 - 24 × 12000
$136,000 = $136,000
(b) Computation of total cost for 17000 units of production
Total cost = [variable cost per unit × units produced ] + total fixed cost
= [24 × 17000] + 136000
= $544,000.
D. the bank will deduct $300 from her account.
Answer: stress management and willingness to travel
Explanation:
Based on the scenario described in the question, Option A and C are both wrong as she doesn't need mechanical knowledge. Mechanical knowledge has to do with one's ability to be able to understand and use tools. She also doesn't need customer service as she isn't attending to customers or anyone.
Since she had to quickly go to Atlanta to put the finishing touches on the project, what she needs is her ability to manage stress and also her willingness to travel.
Answer:
The option B. The profits for common stock owners come before payment to employees, suppliers, government, and creditors. is the false statement.
Profit is any amount that is left after setting aside the cost and liabilities. It is financial gain which is represented by the difference between the amount that is spent and the amount that has been earned or gained. Whereas common stock is a kind of a common share holder equity which also considered to be a type of a security.