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Nata [24]
4 years ago
13

What price must a company typically pay to buy another company? The price will: 1. include some premium over the current market

value of the target's equity. 2. include some discount relative to the current market value of the target's equity. 3. be the book value of the target's equity. 4. be the market value of the target's equity.
Business
1 answer:
Fudgin [204]4 years ago
6 0

Answer: The correct answer is "1. include some premium over the current market value of the target's equity".

Explanation: This value above the market value of equity, consists of those intangible elements that in necessary relationship with a going concern contribute to profit.

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A division manager is choosing between two mutually exclusive projects. Project A Project B Net present value $235,000 $210,000
Gre4nikov [31]

Answer:

Project A

Explanation:

There are two things to consider here when deciding on the project selection. First, the manager requirement to select the project which at least earns 12%.

Second, maximum return that could be generated from the project. This could be confirmed when determining which project has the highest Net present value (NPV). As NPV, is the difference between the present value of cash outflow (investment) and present value of cash inflow (returns) which is discounted at present time. If positive NPV is calculated then this means project is worthwhile.

Assessing the information given in the question, both projects earn at least 12%, therefore they both meet manager's requirements. While in case of Net present value Project A has the highest NPV and therefore suggest a better return on the project's investment in comparison to project B.

Hence, manager will likely choose Project A.

5 0
3 years ago
Stresses a balance between resource use and resource availability?
Citrus2011 [14]

Answer:

conservation ethics

Explanation:

Conservation Ethics is a term in business-related operation that defines the appropriate use or average utilization of limited resources while sustaining the quality of general resources for human use such as natural habitats and atmosphere.

Hence, the correct answer is that Conservation Ethics Stresses a balance between resource use and resource availability

6 0
3 years ago
Duck Company produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs ar
andrey2020 [161]

Answer:

Contribution margin = $16

Explanation:

Contribution is the difference between the selling price and the variable cost.

Contribution margin = (Sales - variable cost )

Variable cost = Variable manufacturing + Variable selling cost

Variable cost = 18 + (15%× 40) = 24

Contribution margin = 40 - 24 =  $16

Contribution margin = $16

3 0
3 years ago
11. Which General Staff member directs management of all incident-related operational activities to achieve the incident objecti
mrs_skeptik [129]

Answer: Chief in operations section

Explanation: The chief in operations section of an entity is responsible for execution of the strategic plan made and implementing the actions done in daily business activities in accordance with the objectives ascertained by the management.

From the above we can conclude that it is the operation section chief who directs management for incident related activities.

4 0
3 years ago
Prime, Inc., purchases $100,000 in construction machinery on January 1, Year 1. The useful life is estimated to be 8 years, and
tigry1 [53]

Answer:

Explanation:

The computation of the depreciation rate by using the double-declining-balance method is shown below:

= One ÷ useful life

= 1 ÷ 8

= 12.5%

In double declining method, the depreciation would be double of straight-line method that means

= Two × depreciation rate

= 2 × 12.5

= 25%

The purchase cost, the residual value is not relevant to find out the depreciation rate. Hence, it would be ignored

6 0
3 years ago
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