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vitfil [10]
3 years ago
10

Alto and Solo are all-equity firms. Alto has 2,400 shares outstanding at a market price of $24 a share. Solo has 4,000 shares ou

tstanding at a price of $17 a share. Solo is acquiring Alto for $63,000 in cash. The incremental value of the acquisition is $5,500. A) What is the net present value of acquiring Alto to Solo
Business
1 answer:
Novosadov [1.4K]3 years ago
7 0

Answer:

$100

Explanation:

Alto's share value =  (2,400 × $24) = $57,600

Alto's total value = Share value + Incremental value of acquisition = $57,600 + $5,500 = $63,100

Net present value (NPV) = Alto's total value - Cost of acquisition =  $63,100 - $63,000 = $100

Therefore, the net present value of acquiring Alto to Solo is $100.

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Yanka [14]

Answer: Increase of 3.2%

Explanation:

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It is the internal rate of return that would equate her future earnings to the investment in college fees.

Change in ROI = 11.18% - 7.98

= 3.2%

Increase of 3.2%

6 0
3 years ago
Identify the type of advertising based on the given scenario.
frutty [35]

Answer:

Direct marketing

Explanation:

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3 years ago
A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has ___ goal(s) an
Trava [24]

Answer: single; quantitative

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The discounted cash flow analysis is used in real estate, investment finance, patent valuation etc. A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has single goal(s) and quantitative measures.

6 0
3 years ago
l a fixed asset for $72,376 when its book value is $43,070. If your company's marginal tax rate is 25 percent, what will be the
tiny-mole [99]

Answer:

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Explanation:

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<u>First, we need to calculate the gain from the sale and the tax:</u>

Gain= 72,376 - 43,070= $29,036

Tax= gain*tax rate

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<u>Now, we can calculate the after-tax cash flow:</u>

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4 0
3 years ago
HELP!!!!!!Match the job role with the job title.
juin [17]

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Internal revenue investigator: Review Tax Documents, Review financial records.

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Explanation:

6 0
3 years ago
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