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Kazeer [188]
3 years ago
8

A common stockholder has no guarantee of receiving any cash inflows, but receives what is left after all other claims on the fir

m's income and assets have been satisfied.
a. True

b. False
Business
1 answer:
algol [13]3 years ago
7 0
The answer to this problem is "FALSE". It is not true that a common stockholder has no guarantee of receiving any cash flows, but receives what is left after all other claims in the firm's income and assets have been satisfied. The truth is common stockholders are the true owner of the firm. They are also sometimes called as the residual owner or the residual claimants. They took the residual claims on the firms and they are very assured that they cannot lose the amount that they invested in the firm.
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Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218
lara31 [8.8K]

Answer:

The maximum Southern Tours could pay to acquire the Holiday Vacations is the present is the value of the inflows to be generated from the target company.

The present of the target business is $519,799.59  

Explanation:

That amount is the maximum that should be paid for the target business,depending on negotiation skills of Southern Tours' management.

A  lower price could be bargained,which better makes the investment more profitable.

Find attached spreadsheet for detailed computations.

Download xlsx
6 0
3 years ago
Calip Corporation, a merchandising company, reported the following results for October: Sales $427,000 Cost of goods sold (all v
nekit [7.7K]

Answer: $222,800

Explanation:

Given that,

Sales = $427,000

Cost of goods sold (all variable) = $173,400

Total variable selling expense = $21,200

Total fixed selling expense = $18,900

Total variable administrative expense = $9,600

Total fixed administrative expense = $36,300

Variable expenses:

= Cost of goods sold + Variable selling expense + Variable administrative expense

= $173,400 + $21,200 + $9,600

= $204,200

Contribution margin = Sales - Variable expenses

                                  = $427,000 - $204,200  

                                 = $222,800

5 0
3 years ago
When merchandise sold is assumed to be in the order in which the purchases were made, the company is using a.last-in, first-out
klasskru [66]

Answer:

The correct answer is letter "D": first-in, first-out.

Explanation:

A business using the first-in, first-out (FIFO) inventory valuation approach must sell, use or dispose first of all the products it produced or acquired. According to the FIFO process, the most recent assets purchased or generated are those that remain in inventory. Older stock is first removed from inventory.

6 0
3 years ago
Why are some economists concerned about the proliferation of regional trade agreements? regional trade agreements terms can conf
d1i1m1o1n [39]
Here are several reasons why economists are concerned about the <span>proliferation of regional trade agreements:
- </span><span>Regional trade agreements terms can conflict with those of the WTO 
- </span><span>Regional trade agreements may limit trade from outside the regions in agreement 
Regional trade agreements basically could make the economy within a certain region became secluded from other countries and may raise the price of certain commodities.</span>
7 0
3 years ago
Amila is examining the monthly returns of various stocks. she would like to compare the underlying distributions of the stocks v
Masteriza [31]

An alternative plot for Amila to use is to use a graph to depict the data.

<h3>How to illustrate the information?</h3>

From the information, she is worried that it is difficult to compare the distributions of two stocks that are not next to each other on the plot.

Therefore, a graph can be used to better illustrate the information.

Learn more about graph on:

brainly.com/question/19040584

#SPJ1

8 0
2 years ago
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