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Nata [24]
3 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]3 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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Fiona deposits $2000 into a savings account. if the FeD requires a 20% reserve ratio, how much money can the bank lend?
Assoli18 [71]
The correct answer is b)1600
4 0
3 years ago
Read 2 more answers
Master Grill Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services
olchik [2.2K]

Answer:

cash    14,250 debit

      unearned revenue    14,250 credit

--sing and payment of the contract--

unearned revenue   14,250 debit

     sales revenues                 11,640 credit

     service revenue                2,910  credit

--accrued revenue for 15 grill sold and installed--

cost of good sold   7,050 debit

   Inventory                         7,050 credit

--cost of the grill sold in combo --

Explanation:

At May as the owenership/installationwasn't complete. Will be recognizeas unearned revenue.

15 contract x 950 per contract = 14,250 cash proceeds

Now, at recognition a portion of the revenue will be considered services revenue and another sales revenue.

grill sale price    800

installation fee   200

total                  1,000

the grill represent 80% of the revenue (800/1,000)

the installation fee 20% (200/1,000)

Thus, 970 x 80% = 776 sales revenue

and    970 x 20% = 194 service fees revenue

We multiply by 15 to get the revenue of these contract:

776 x 15 = 11,640

194  x 15 =  2,910

Cost of goods sold: 15 x 470 = 7,050

4 0
3 years ago
vThis portion of the continuous problem continues the General Fund and special revenue fund examples by requiring the recording
Crank

Solution:

Given,

a) As of January 1, 2017,

$11,150,000 in property tax and other revenue, $9,350,000

$1,700,000 to be transferred to two debt service funds

b) Also as of January 1, 2017, state government in the amount of $1,068,000 and appropriations of $1,047,000.

Please check the attachment for tabular form

5 0
3 years ago
"In the Modigliani Miller perfect world with no taxes, if we assume that the effect of adding debt to firm's capital structure i
harina [27]

Answer: WACC remains constant as leverage increases.

Explanation:

Here is the complete question:

In the Modigliani Miller perfect world with no taxes, if we assume that the effect of adding debt to firm's capital structure is exactly balanced by an increase in the cost of equity as more debt is added, what is the effect of increased debt usage on the weighted average cost of capital (WACC)?

a. WACC first increases, then decreases as leverage increases.

b. WACC remains constant as leverage increases.

c. WACC increases continuously as leverage increases.

d. WACC decreases continually as leverage increases.

In the Modigliani Miller perfect world with no taxes, the capital structure is not relevant as the way a company finances it operations does not really matter.

For the capital markets, they will be perfectly competitive and there will be no taxes, bankruptcy costs or transactions cost and investors all have the same expectations. The weighted average cost if capital will be thesame even though leverage increases.

3 0
3 years ago
sports medicine clinic is considering hiring an athletic trainer. However, the clinic administrator is concerned that the athlet
exis [7]

Answer and explanation:

<em>Medical insurances</em> have different ways to cover expenses out of medical treatments. Some of them have partnerships with clinics that become their service providers so insureds go to those clinics after purchasing an insurance policy and can be assisted in those service providers without payment.  

However, when insurances do not have any service provider available, <em>the insured must make the payment of the assistance up front and keep the bill for the expenses so the insured can submit the information of the assistance to the insurance company requesting a refund</em>. The reimbursement is done according to the general terms and conditions of the insurance hired.

6 0
3 years ago
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