Answer:
7.58m
Explanation:
The VelSad is considering to acquire Po, Inc. by offer of 20 million cash or either 44% holding. The cost of acquisition refers to all cost incurred by a company to acquire another company. The benefit VelSad can get after acquiring Po, Inc is that it can save marketing and administrative cost by $560,000 every year. The cost of stock offer is 7.58 million. This is calculated by taking 44% of VelSad value and then discounting it at cost of capital which is 10%.
Answer:
D: Geographic segmentation
Explanation:
Geographic segmentation is defined as the marketing strategy that primarily aims to target the distinct choice preferences of the customers across a specific region or area. DeConinck Co. is employing this strategy to understand the consumer needs and cater to the different types of demands of their customers residing across the region by producing and marketing products accordingly.
Answer:
Provide a device through which the credit-creating activities of banks can be controlled
Explanation:
The legal reserve requirement is the minimum amount mandated by Central banks for banks to have as their minimum reserves.
The legal reserve requirement is used by the government as a means to control the supply of money in the economy.
If the central bank wants to reduce money supply, it increases the legal reserve requirement and if it wants to increase money supply, it reduces the legal reserve requirement.
A high reserve requirement reduces the amount that banks can make available for loans.
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Answer:
C. $40,000
Explanation:
For computing the amount of the gain recognized, first we have to calculate the gain recognized based on the adjusted basis
= Cash received + fair market value of the stock - adjusted cash basis
= $40,000 + $60,000 - $35,000
= $100,000 -$35,000
= $65,000
But the cash is received for $40,000. So, only $40,000 of gain would be recognized. As in the case of transfer, if the amount is received other than the stock so the amount which is received is recognized as a gain i.e $40,000
Insurance companies negotiate discounts with hospitals under a PPO. Option A
This is further explained below.
<h3>What are Insurance companies?</h3>
Generally, A corporation, which may be for-profit, not-for-profit, or government-owned, offers the promise to pay for particular expenditures in return for a recurring charge, which is referred to as a premium. For instance, if a person acquires health insurance, the insurance company will pay for (at least part of) the client's medical expenditures, if the client has any medical bills.
In conclusion, Within the context of a PPO, insurance companies negotiate savings with hospitals. Alternative
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