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padilas [110]
2 years ago
5

A baseball fan with a Mike Trout baseball card wants to trade it for a Giancarlo Stanton baseball​ card, but everyone the fan kn

ows who has a Stanton card​ doesn't want a Trout card. Economists characterize this problem as a failure of the___________.
A. principle of a double coincidence of wants.
B. theory of comparative advantage.
C. irrational exuberance doctrine.
D. market clearing mechanism
Business
1 answer:
weeeeeb [17]2 years ago
3 0

Answer:

The correct answer is option A.

Explanation:

The double coincidence of wants or coincidence of wants refers to the situation where two parties possess items that the other one wants so they exchange it directly without using money.  

Here, a fan possesses a Mike Trout baseball card who wants to trade it for a Giancarlo Stanton baseball​ card but he does not know anyone who wants a Trout card and possesses a Stanton card.  

Simply put, the fan doesn't know anyone who possesses the item he wants and is willing to trade it for the item he possesses. This is an example of failure in the double coincidence of wants.

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Firm B Firm T Shares outstanding 4,800 1,800 Price per share $ 47 $ 20 Firm B has estimated that the value of the synergistic be
zmey [24]

Answer:

A. Share Offer Is Better

B. .4569

Explanation:

A. Based on the information given the shareholders of Firm T will be better off with the STOCK OFFER because cash offer is the amount of $22 per share.

B. Calculation to determine the exchange ratio of B shares to T shares

First step is to calculate the New shares created

New shares created = 1,800(1/2)

New shares created = 900 new shares

Second step is to calculate the value of the merged firm

Value of the merged firm= 4,800($47) + 1,800($20) + $9,100

Value of the merged firm= $270,700

Third step is to calculate the price per share of the merged firm

Price= $270,700/(4,800 + 900)

Price= $270,700/5,700

Price= $47.49

Fourth step is to calculate the Equity offer value

Equity offer value = (1/2)($47.49)

Equity offer value = $23.75 per share

Fifth step is to calculate the post merger share price

Value of the merged firm= $270,700

Shares in new firm = 4,800 + 1,800x

Hence:

Post merger share price:

P= $270,700/(4,800 + 1,800x)

Sixth step

For the target firm’s shareholders to be indifferent which means they have to receive the same wealth

Hence;

1,800(x)P= 1,800($22)

Let solve this equation for P

P= $22/x

Now Let Combine the two equations

$270,700/(4,800 + 1,800x) = $22/x

x= .4569

Seventh step is to calculate the NPV

NPV = 1,800($20) + $9,100 – 1,800($22)

NPV = $5,500

Eight step is to calculate the Share price

Share price = [4,800($47) + $5,500]/4,800

Share price = $48.15

Now let calculate the Exchange ratio

Exchange ratio = $22/$48.15

Exchange ratio = .4569

Therefore the exchange ratio of B shares to T shares that the shareholders in T would be indifferent between the two offers is .4569

8 0
3 years ago
What is the risk posture for each particular system as it contributes to the overall risk posture of the organization
Nutka1998 [239]

Please find attached full question Answera and Explanation:

Risk posture or cybersecurity posture is the general status or overall defense of the cybersecurity program in place in an organization to guard against cyber attacks and data breaches. For a company to maintain reasonable cyber security posture as there is no fool proof cybersecurity posture, there is need for regular continuous assessment of risk exposures and potential loopholes across the company's digital infrastructure. There are different digital and sophisticated infrastructures utilized by am organizations and most if not all are well prone to cyber attacks. These infrastructures are used by employees for work e. g-email, went servers, phones, networking devices and cloud programs etc . Therefore each employee must be educated in the need to safeguard company data by looking out for traps set by cyber attackers such as phishing in email and many other loopholes. Vulnerability tests need to be performed at regular intervals and reports monitored and analyzed to protect against a potential source of cyber attack.

7 0
2 years ago
Record year-end adjusting entries (LO3-3) Below are transactions for Wolverine Company during 2021. On December 1, 2021, Wolveri
marysya [2.9K]

Answer: See explanation

Explanation:

1. Dr Deferred revenue 2,000

Cr. Rent revenue 2,000

2 Dr. Insurance expense 6,600

Cr. Prepaid insurance 6,600

3 Dr Salaries expense 3,000

Cr Salaries payable 3,000

4 Dr Interest expense 250

Cr Interest payable 250

5 Dr Supplies expense 3,900

Cr Supplies. 3900

N. B:

Rent revenue for December was calculated as:

= $4,000 x 1/2

= $2,000

Insurance expense for the current year was calculated as:

= $13,200 x 6/12

= $6,600

Interest expense:

= $15,000 x 10% x 2/12

= $15000 × 0.1 × 2/12

= $250

Supplies expense:

= $1,000 + $3,400 - $500

= $3,900

3 0
3 years ago
What is effective demand?
Ahat [919]
The level of demand that represents a real intention to purchase by people with the means to pay
5 0
2 years ago
Details of invoices for purchases of merchandise are as follows: Merchandise Freight Terms Returns and Allowances(a) $2,800 $45
Lostsunrise [7]

Answer:

A.$2,619

B.$6,800

C.$839

D.$495

Explanation:

Calculation to Determine the amount to be paid in full settlement of each of the invoices,

a) (2,800-200)*99%+45

=2,600*99%+45

=2,574+45

= $2,619

b) (7,600-800)

= $6,800

c)$1,400 – $600 – $16 + $55

=$784+$55

= $839

d)$500 –$5 = $495

6 0
2 years ago
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