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VLD [36.1K]
3 years ago
10

A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and th

e expected after-tax earnings attributable to the merger. This can be done on all of the following levels except:
Business
1 answer:
MAXImum [283]3 years ago
6 0

Answer:

Logical scenarios

Explanation:

When there has to be a deal of merger, then their is evaluation of the value of entity to be merged. At times the merger takes place between different companies, where they both loose their respective identities, and form a new company joining both.

In that case, evaluation is done, by discounting the value of expected cash flows to be earned.

It is possible most of the times, but in logical scenarios, this is not feasible, as there are many factors changing with the practical implementation of merger.

As the tax rate of identity might change, the expected sales, might increase or decrease. The managerial payments might fluctuate than the expected change. Also, the expenses of running the company might also change.

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Newtech corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of
White raven [17]

The stock price after the stock dividend =  $3636

<h3>What is Stock dividend?</h3>

A common stock dividend is a payment made from a company's profits to holders of common stock. The payout is made in the form of stock or cash, much like regular dividends. The amount of the common stock dividend may be regulated by law, especially if it is paid as a cash distribution that is effectively a liquidation.

<h3>What is shares outstanding?</h3>

All of the shares of a corporation that have been approved, issued, and purchased by investors and are now owned by them are referred to as outstanding shares. They differ from treasury shares, which are stock held by the corporation itself and have no rights that can be exercised.

<h3>According to the given information:</h3>

There are 200,000 shares in circulation.

Profits after taxes amount to $800,000.

$48 is the current stock price.

Stock dividend equals 10%

number of shares outstanding following a stock dividend

=200,000*(1+10%)

=220,000

earnings per share following stock dividends

=$800,000/220,000

=$3.636

As a result, $3.636 worth of earnings per share remain after the stock dividend.

To know more about Stock dividend visit:

brainly.com/question/13049947

#SPJ4

5 0
1 year ago
Given the following changes what is the net effect on cash? (1) Accounts Receivables increases by $150; Inventory decreases by $
Karolina [17]

Answer:

Net Cash Increase of $115

Explanation:

Receivable Increases by $150 means a cash outflow in receivable by $150 because Increase in Receivable indicates that there are more sale on credit is made than cash received from the customers. So, the outflow in the receivable section is more than the inflow.

Inventory Decreases by $95 means the inventory sold during the period is more than purchases / manufactured. It result in cash inflow as cash is not being held in the form of inventory.

Accounts Payable increases by $225 means that company is making less payment to its suppliers, so that its balance has been increase. Company made more purchases than payment made to suppliers. Net cash Inflow is observed from this.

Common dividend payment of $55 means a direct cash outflow because actual cash has been paid during the year.

Net Effect on Cash = Cash inflows - Cash outflows

Net Effect on Cash = ( Inventory decrease + Accounts Payable increase ) - ( Accounts Receivables increase + Common dividend payment )

Net Effect on Cash = ( $95 + $225 ) - ( $150 + 55 )

Net Effect on Cash = $320 - $205

Net Effect on Cash = $115

Net Cash Increase of $115

6 0
2 years ago
You want a seat on the board of directors of Four Keys, Inc. The company has 265,000 shares of stock outstanding and the stock s
Mila [183]

Answer:

44,167.67 shares

Explanation:

Given that

Number of shares of stock outstanding = 265,000

Sale value per share of stock = $76

Number of seat for election = 5

So by considering the above information, the number of shares needed by using the cumulative voting is

= {shares outstanding ÷ (number of seats + 1) + 1}

= {(265,000 shares ÷ (5 +1) +1}

= 44,167.67 shares

5 0
3 years ago
A seven-year-old boy breaks his tibia and requires immobilization by a hard cast for six weeks until the break heals. A potentia
klemol [59]
Detereation of muscle tissue causing weakness in the limb
5 0
3 years ago
Read 2 more answers
This occurs when one party repeatedly holds out for a better deal.
Debora [2.8K]
A breakdown in bargaining happens when one party repeatedly holds our for a better deal. In this cases, private solutions to this kind of externalities is deemed necessary. Though bargaining is quite common among transactions made by economists, it cannot be helped that there are certain problems that arise from this.
8 0
3 years ago
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