Answer:
e
Explanation:
A merger can be described as the absorption of one firm by another firm.
When a merger occurs, one of the firms would not exist as a separate entity while the other firm would continue to exist.
<em><u>Types of merger </u></em>
<em><u>1. Horizontal merger : </u></em>this is a type of merger that occurs between firms in the same industry. The firms are usually competitors.
<u><em>Reasons for an horizontal merger</em></u>
- It is done to increase the market power of a firm
- This type of merger is done to achieve economies of scale.
An example of an horizontal merger is the merger between Mobil and Exxon in 1999.
2.<u><em> Vertical merger : </em></u>this is when a firm purchases another firm in the same production line. e.g. a baker purchases a pastry distributing company
<u><em>Reasons for a vertical merger</em></u>
- Cost savings
- It provides the firm acquiring a greater control of the production process.
<u><em>Types of vertical merger</em></u>
<u><em>a. Backward integration :</em></u> it is when the acquiring firm purchases a firm ahead of it in the production process. e.g. a baker purchases a pastry distributing company
<u><em>b. Forward integration :</em></u> it is when the acquiring firm purchases a firm that is behind it in the production process. e.g. a baker purchases a firm that supplies grains
<u><em>3. Conglomerate merger : </em></u>This occurs when the products of the merging firms were not related in any manner before the merger.
The answer to this question is the Ethical organizational Cultures. The Ethical organizational Culture is the standards and principles that the business or company believes which makes an impact to the members of the organization and these values gives impact to them. Each company have a different or unique organizational culture.
Answer:
$1,311,000
Explanation:
The computation of the operating cash flow is shown below:
As we know that
Operating cash flow = Cash flow from assets + capital spending - change in net working capital
where,
Cashflow from Assets = Cashflow to Creditors + Cashflow to Stakeholders
Cashflow to Creditors = Interest paid - Change in long term debt
= $140,000 - ($2,950,000 - $2,700,000)
= -$110,000
Now
Cashflow to Stakeholders
= Dividends paid - New issuance of the equity
= $500,000 - (($500,000 + $3,500,000) - ($460,000 + $3,200,000))
= $160,000
So,
Cashflow from Assets is
= -$110,000 + $160,000
= $50,000
Now
Operating cashflow is
= $50,000 + $1,320,000 + (-$59,000)
= $1,311,000
Answer:
11.68%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.4% + 1.3 × (10% - 4.4%)
= 4.4% + 1.3 × 5.6%
= 4.4% + 7.28%
= 11.68%
The (Market rate of return - Risk-free rate of return) is also called market risk premium
Answer:
Debit Estimated Warranty Liability $14,000; credit Merchandise Inventory $14,000.
Explanation:
The journal entry is shown below:
Estimated Warranty Liability A/c Dr $14,000
To Merchandise Inventory $14,000
(Being the customer warranties is settled)
Since we have to settle the customer warranties, so we debited the estimated warranty liability account and credited the merchandise inventory account
Hence, all other options are wrong except last one
