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ratelena [41]
3 years ago
6

Rosie's has 1,300 shares outstanding at a market price per share of $10. Sandy's has 2,000 shares outstanding at a market price

of $23 a share. Neither firm has any debt. Sandy's is acquiring Rosie's. The incremental value of the acquisition is $1,800. What is the value of Rosie's to Sandy's
Business
1 answer:
Ad libitum [116K]3 years ago
5 0

Answer:

$14,800

Explanation:

Rosie's has 1,300 shares outstanding at a market price of $10

Sandy's had 2,000 shares outstanding at a market price of $23

The incremental value of the acquisition is $1,800

Therefore, the value of Rosie's to Sandy's can be calculated as follows

=( 1,300×$10)+$1,800

= $13,000+$1,800

=$14,800

Hence the value of Rosie's to Sandy's is $14,800

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Answer and Explanation:

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Contribution

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2. Now the estimation of decline in operating income is

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Less:

Variable cost    $5,702                                 $2,919

                    ($2,919 + $2,783)

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Less:

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Net income        $3,341                                  $1,681

So according to the above calculations, the net operating income is declined by

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7 0
3 years ago
Dave makes payments of 100 at the end of year 1, 300 at the end of year 3, 500 at the end of year 5 and so on until he makes his
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Answer:

The present value for each year is calculated at 4% interest. In this question the present value be the sum of the cash deposits plus the interest for each year.

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= 32340

Explanation:

To calculate the sum of the cash deposits, add the deposit for each year.

(Year 1 to Year 21 = 23100)

To calculate the interest for each year, take the cash deposit for the year and multiply it by 4%. (Year 1 to Year 21 = 9240)

Refer to the attached spreadsheet to assist with the calculations and the answer given above.

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3 years ago
In 2017, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2018 for $700,000. Before the Decemb
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Answer:

d) as a current liability.

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3 years ago
Alarm owns a small farm .the income of the business
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You did not finish the question, I cannot help you. If you repost this I will try and help you
7 0
1 year ago
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Answer:

($89,000)

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7 0
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