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3 years ago

What is the advantage of a variable-interest

1 answer:

3 0

A variable rate loan can result in a lower payment in the short-term but carries a risk that the rate could rise during the long-term and produce significantly higher payments.

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Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms ha

Alborosie

Answer:

The answer is "Share offer is better".

Explanation:

Firstly Computing the value of the combined company:

The merger value = the market value of the B company + the market value of the T + synergically advantages

= shares issued * share price of company B + outstanding shares * price per share of company T + benefits for synergies

$=4,600 \times \$40+1,000\times \$14+\$8,800\\\\=\$206,800\\\\$

Number of new shares which have been created following the merger = the number of shares in the T *exchange ratio

$=1000 \times \frac{1}{2}\\\\=500 \ shares\\\\$

The percentage price of the fusion company = the value of the fusion company /the share value of the fusion company

The per-share price of the combined company $=\frac{\$206,800}{4,600+500}=\frac{\$206,800}{5,100}=\$40.55$

The cash offer value = 16 dollars per share

Stock offer value = price of merged company share /2 $= \frac{\$40.55}{2}=\$20.27 / \ share\\\\$

Thus, share offer is better

8 0

3 years ago

Presented below is information related to Teal Mountain , Inc. Date End-of-Year Inventory (End-of-Year Prices) Price Index Decem

Alona [7]

Answer:

2017 $1,250,000

2018 $1,512,500

2019 $1,439,000

2020 $1,637,900

Explanation:

The computation of ending inventory is shown below:-

Year Inventory Price index Inventory at base Change from prior

at end year year years

2017 $1,250,000 100 $1,250,000 0

2018 $1,575,000 105 $1,500,000 $250,000

2019 $1,573,000 110 $1,430,000 ($70,000)

2020 $1,872,000 117 $1,600,000 $170,000

Inventory at base year prices

2017 = $1,250,000 ÷ 100 × 100 = $1,250,000

2018 = $1,575,000 ÷ 105 × 100 = $1,500,000

2019 = $1,573,000 ÷ 110 × 100 = $1,430,000

2020 = $1,872,000 ÷ 117 × 100 = $1,600,000

So, dollar value ending inventory

2017 $1,250,000 × 1.0 = $1,250,000

$1,250,000

2018 $1,250,000 × 1.0 = $1,250,000

$250,000 × 1.05 = $262,500

$1,512,500

2019 $1,250,000 × 1.0 = $1,250,000

($250,000 - $70,000) × 1.05 = $189,000

$1,439,000

2020 $1,250,000 × 1.0 = $1,250,000

($250,000 - $70,000) × 1.05 = $189,000

$170,000 × 1.17 = $198,900

$1,637,900

2017 $1,250,000

2018 $1,512,500

2019 $1,439,000

2020 $1,637,900

6 0

4 years ago

Management’s attitude toward aggressive financial reporting and its emphasis on meeting projected profit goals most likely will

horrorfan [7]

Answer:

the Management section is completely controlled by only one person who is also a shareholder.

Explanation:

Based on the information provided within the question this will significantly increase when the Management section is completely controlled by only one person who is also a shareholder. In any situation where one person hold's all the power, corruption (fraudulent financial reporting) increases since the individual is able to blend in and not raise suspicion since they are the only one that is completing a certain task.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0

3 years ago

List at least three things you would consider when choosing a bank and account type.

ELEN [110]

Free Checking. APR (Annual Percentage Rate) on Savings and of the bank is a Credit Union or a plain ole bank.

5 0

3 years ago

Read 2 more answers

Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

Y_Kistochka [10]

Answer:

1. $35,830

2. B) No, since ROI will be lowered.

3. $13 per DL

Explanation:

1. Present value of inflows = $146,000*Present value of annuity factor (10%,6)

Present value of inflows = $146,000 * 4.355

Present value of inflows = $635,830

Net present value = Present value of inflows - Present value of outflows

Net present value = ($635,830 - $600,000)

Net present value = $35,830.

So, the net present value for Project Nuts is $35,830.

2. ROI = Net income / Investment

ROI = (100000-60000-40000) / 150000

ROI = 0%

The ROI required is 25%. Hence, the new project should not be accepted as ROI will be lowered.

3. Direct labor price Variance = Actual hours (AR - SR)

$10,500 = 10,500 (AR - $12)

$10,500 = 10,500 AR - $126,000

AR = $10,500 + $126,000 /10,500

AR = $13 per direct labor hour.

So, the actual rate of pay for direct labor is $13 per DLH.

4 0

3 years ago