Florence is a highly paid fashion consultant who earns $100 per hour. She has 16 hours per day that she can allocate to work or
leisure, and she decides to work for 12 hours. Now suppose one of Florence's clients is featured on the front page of Vague, an influential fashion magazine. As a result, Florence's consulting fee now rises to $500 per hour. Florence decides to work only 10 hours per day. Draw Florence's new time allocation budget line, with income on the vertical axis and hours of leisure on the horizontal axis, and illustrate the indifference curve at her optimal choice. Choose the correct statement.
1 answer:
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Based on the costs of acquisition of Walmart by Amazon, the total transaction costs would come to B. $22,002.
<h3 /><h3>What are the total transaction costs?</h3>Equity financing cost:
= 5.5% x 241,350.75
= $13,274.29
Debt financing cost:
= 1.5% x 241,350.75
= $3,260.26
Other transaction costs:
= $3,000
Target debt redemption premium:
= 70,242 x 3%
= $2,107.26
The total transaction costs are:
= 13,274.29 + 3,260.26 + 3,000 + 2,107.26
= $22,002
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