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il63 [147K]
4 years ago
5

​Greystone Group is looking to purchase Heartland Hotels, Inc. Greystone plans to use $5 million in cash and finance $20 million

in order to complete the purchase. Greystone is confident they can turn Heartland’s business around and repay the $20 million from profits earned from the hotel. This is an example of a
Business
1 answer:
kramer4 years ago
5 0

Answer:

Leverage buyout

Explanation:

Leverage buyout refers to the acquisition of another company using debt as the main source of financing the deal. The acquiring company borrows from various sources and will often use the assets of the acquired company as collateral. In leverage buyout, the acquiring entity borrows up to 80 percent or more and finances the balance with its equity.

The use of debt enhances the rate of return of the acquiring firm. Greystone Group is using 5 million of its funds and borrowing 20 million. The debts represent 80 percent of the cost of acquisition. The acquiring entity can achieve a higher rate of return by using as little of its funds as possible.

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A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of
Oxana [17]

Answer:

A. a separate schedule.

Explanation:

This is explained to be cash flow schedule or also cash flow statement. It is explained to be on out of the three financial statement which used generally to report for cash which been generated and how this money has been totally been spent within a period or interval which could be a week, month, quarter or even probably a year.

In the statement of cash flows, the cash flows are known to be generated from investing activities section while inclusion of receipts from the sale of investments. This is why in the stated 20 year payable bond, it is known to have been recorded in statement of cash flows in a separate schedule.

4 0
4 years ago
A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of w
aniked [119]

Answer:

The required cycle time for this assembly line is 2 minutes. The rigtht answer is c.

Explanation:

Acording to the data, we have the following:

Daily operating time= factory operates 1000 minutes per day

Scheduled output=make 500 El-More dolls per day

Therefore, to calculate the required cycle time for this assembly line we have to use the following formula:

Cycle time = daily operating time divided by the scheduled output

                  = 1000 / 500 = 2 minutes

The required cycle time for this assembly line is 2 minutes.

6 0
4 years ago
Read 2 more answers
You are the newly appointed sales manager of the Rock Record Company and have been charged with the task of increasing revenues.
mote1985 [20]

Answer:

Increase price.

Explanation:

Price elasticity is the degree of responsiveness of quantity demanded to changes in price. Ideally as price increases quantity demanded reduces. When prices reduce quantity demanded increases.

As a new manager of Rock Record company, if the economics consultants inform you the price elasticity is less than one it means quantity does not change with increase in price.

So price can be increased without a corresponding decrease in price. The goal of higher revenue can be achieved by increasing the product price.

6 0
3 years ago
Read 2 more answers
Some years ago, chemists at 3M Corporation were trying to create a super-strong glue. Somehow they got their molecules twisted a
scoray [572]

Answer: An entrepreneur

Explanation:

The 3M corporation in the process of creating a new product from a fresh idea are acting as an entrepreneur. An entrepreneur is an individual or organization that is actively involved in creating a new product and investing in that product, with the aim of gaining a profit in return from their investment.

7 0
4 years ago
Park Place Company reported cost of goods sold of $140,000 for the year 2020. Park Place also reported the following amounts on
Paul [167]

Answer:

the cash paid to supplier is $143,000

Explanation:

The computation of the cash paid to the supplier is given below;

Purchases = Ending inventory + cost of goods sold - beginning inventory

= $27,500 + $140,000 - $25,000

= $142,500

Now the Cash paid to supplier is

= Beginning account payable + purchases - ending account payable

= $15,000 + $142,500 - $14,500

= $143,000

hence the cash paid to supplier is $143,000

6 0
3 years ago
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