Identify two advantages of dollar-value lifo compared with unit lifo.

Harrods PLC has a market value of £136 million and 4 million shares outstanding. Selfridge Department Store has a market value o

Lisa [10]

Answer:

the stock price after the acquisition is $37.30

Explanation:

The computation of the stock price after the acquisition is given below:

= Worth of combined synergy ÷ (outstanding shares = harrods shares)

= £194 million ÷ (4 million + 1.2 million)

= £194 million ÷ 5.2 million shares

= $37.30 per share

hence, the stock price after the acquisition is $37.30

We simply applied the above formula so that the correct answer could come

5 0

3 years ago

Shawn puts money into an account. One year later he sees that he has 6 percent more dollars and that his money will buy 5 percen

Paladinen [302]

Answer:

d. The nominal interest rate was 6 percent and the inflation rate was 1 percent.

Explanation:

Nominal interest rate = real interest rate + inflation rate

Real interest rate is nominal interest rate less inflation rate. The real interest rate represents the real purchasing power of interest paid.

If the interest rate buys 5 percent more goods ,it means that the purchasing power and the real interest rate is 5 percent.

The nominal interest rate is 6 %

Inflation rate = nominal interest rate - real interest rate

= 6% - 5% = 1%

I hope my answer helps you.

7 0

3 years ago

Carla Vista Electronics reported the following information at its annual meetings: The company had cash and marketable securitie

adell [148]

Answer:

$6,718,553

Explanation:

Working capital is the net of current assets (Inventory, account receivables, Cash etc) and current liabilities (Accounts payable, short term notes payable etc).

It is a financial measure that gives insight into how liquid a company is. .

As such, the company's working capital

= $1,235,455 - $4,159,357 + $7,184,800 + $3,472,300 - $1,136,100 + $121,455

( the signs are positive for assets and negative for liabilities)

= $6,718,553

6 0

3 years ago

How much will be in the Prepaid Insurance account at the end of the year, after the adjusting entries have been prepared and pos

Crazy boy [7]

Answer: $8,400

Explanation:

The $9,600 is for 2 years in advance. This can be apportioned per month at a rate of;

= 9,600/24

= $400 per month.

October to the end of the year is 3 months so;

= 400 * 3

= $1,200 will be recorded for the year.

Prepaid Insurance will therefore reduce to;

= 9,600 - 1,200

= $8,400

8 0

3 years ago

The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $56

myrzilka [38]

Answer:

NPV of Plan A: $15,669,953.

NPV of Plan B: $18.260,647.

For the Plan A, the IRR is r=0.15.

For the Plan B, the IRR is r=0.32.

Explanation:

We have two expansion plans:

Plan A:

- Expenditure: -$56 million

- Cash flow: $9 million/year

- Duration: 20 years

Plan B:

- Expenditure: -$12 million

- Cash flow: $3.8 million/year

- Duration: 20 years

The NPV of plan A can be expressed as:

$NPV_A=-I_0+\sum_{k=1}^{20} (CF_k)(1+i)^{-k}\\\\NPV_A=-I_0+(CF)[\frac{1-(1+i)^{-20}}{i}] \\\\NPV_A=-56+9*[\frac{1-(1.11)^{-20}}{0.11}]=-56+9*\frac{0.876}{0.11}=-56+9*7.963328117 \\\\NPV_A=-56+71.66995306= 15.669953$

NPV of Plan A: $15,669,953.

The NPV of plan B can be expressed as:

$NPV_B=-I_0+\sum_{k=1}^{20} (CF_k)(1+i)^{-k}\\\\NPV_B=-I_0+(CF)[\frac{1-(1+i)^{-20}}{i}] \\\\NPV_B=-12+3.8*[\frac{1-(1.11)^{-20}}{0.11}]=-12+3.8*\frac{0.876}{0.11}=-12+3.8*7.963328117\\\\NPV_B=-12+30.26064685=18.260647$

NPV of Plan B: $18.260,647.

To calculate the IRR, we have to clear the discount rate for NPV=0. We can not solve this analitically, but we can do it by iteration (guessing) or by graphing different NPV, with the discount rate as the independent variable.

For the Plan A, the IRR is r=0.15.

For the Plan B, the IRR is r=0.32.

5 0

3 years ago