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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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Although ZipCar has some routine operating tasks, its rules and regulations are, for the most part, not strict. ZipCar's decisio
mestny [16]

Answer: bureaucratic characteristics

Explanation:

From the information given, we can say that ZipCar lacks bureaucratic characteristics. A bureaucratic organization is an organization with several layers of systems and processes and this brings about complexity and delay in decision making as it is hierarchical.

Since ZipCar's decision making does not follow a strict chain of command, and the first-line customer service agents have the authority to make decisions without management approval, this shows that the organization lacks bureaucratic characteristics.

3 0
2 years ago
One year ago, you purchased a stock at a price of $32 a share. Today, you sold the stock and realized a total return of 14.62 pe
aliya0001 [1]

Answer:

3.75%

Explanation:

Purchase price of the stock = $32

Total return on the stock:

= Purchase price of the stock × Total return

= 32 × 14.62%

= $4.6784

Dividend gain on the stock:

= Purchase price of the stock + Total return on the stock - capital gain - Purchase price

= $32 + $4.6784  - $3.48  - $32

= $1.1984

Dividend yield:

= Dividend gain on the stock ÷ Purchase price of the stock

= $1.1984 ÷ 32

= 3.75%

7 0
3 years ago
Assume you have a property insurance contract which includes an 80% coinsurance provision. The insured building is worth $5,000,
BaLLatris [955]

Answer:

$1,500,000

Explanation:

in order for the insurance company to pay for all the damages, you should have purchased a policy that covered $4,000,000 in damages. Since the policy only covers $3,000,000, the insurance company will pay:

($3,000,000 / $4,000,000) x $2,000,000 (loss) = 0.75 x $2,000,000 = $1,500,000

3 0
3 years ago
I no longer have a question
katen-ka-za [31]

Answer:

good for you :)

Explanation:

5 0
2 years ago
Read 2 more answers
Vivi Corporation had net income of $401,000 in 2015. The company's Common Stock account balance all year long was $267,000 ($10
ser-zykov [4K]

Answer:

Explanation:

Earning per share =   Net income/ Total Stock

Earning per share =    401000/26700

Earning per share =    15.019

Price earning        =  price per share/EPS

Price earning        =  33.5/15.019

Price earning        = 2.23

6 0
3 years ago
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