The share price for the merged firm is $48.09. Therefore, the correct option is C
<u>Explanation:</u>
(a)-Net Present Value (NPV)
Net Present Value (NPV) = Market Value of the Target Firm + synergistic benefit – Acquisition Value
= [3600 Shares multiply $19] plus $16700 minus [3600 Shares multiply $21]
= $68400 plus 16700 minus 75600
= $9500
“Net Present Value (NPV) = $9500
(b) Share Price
Share price = [Market Value of the Bidding firm + NPV] / Number of shares of the Bidding firm
= [( 8700Shares multiply $47) plus $9500] / 8700 Shares
= [$408900 + 9500] / 8700 Shares
= $48.09 per share
“Share Price = $48.09 per share”
Answer:
You have not provided any options. However, since this is more of a practical question, the suitable answers are,
- Mutual Funds
- Certificate of Deposits
- High yield bearing Bonds
Explanation:
Mutual funds are a wonderful option to track the share market without exposing yourself to too much market risk. A mutual fund holds a diversified portfolio of stocks that distributes risk among various companies from different industries.
That way, even if the market is poorly performing, as a whole, the fund will be stable. Moreover, in the long term, since you have 50 years until you are 70, compounding your dividends will make you a lot of money to retire.
Besides, mutual funds have a high liquidity, making it easier for you to withdraw your money.
Certificate of Deposits are virtually risk free and provides a descent income through the high interest rates.
The main benefit here is the compounding effect of the interest. Since 50 years is a long time frame, even if you start small, you can eventually end up with a hefty sum to help your retirement. Because the compounding effect will be highly effective in the long term.
Goods and services were exchanged through a BARTER SYSTEM. Barter is a system in which goods and services are exchanged for other goods and services without using any medium of exchange such as money. Reciprocal exchange is often immediate and not delayed.
I think it woul be better off. Exporting goods makes more money that importing them because you are making goods to be sold in other countries. Importing goods from other countries generally means people have to spend more due to shipping and handling.
Answer:
Y=4200+0.074X
At activity level of 80,000 kilometers total cost is $10,120
Explanation:
Variable cost=(cost at higher activity-cost at lower activity level)/(vol. at higher activity level-vol. at lower activity level)
cost at higher activity level=105000*0.114=$11,970
cost at lower activity level=70000*$0.134=$9,380
variable cost=($11,970-$9,380)/(105,000-70,000)
=$0.074
The cost function is Y=a+bX
where Y is total cost
a is fixed cost
b is the variable cost
X is the volume of output at a particular level of output
by substituting variable cost at higher activity level of 105000 units
$11,970=a+($0.074*105000)
$11,970=a+$7770
a=$11,970-$7,770
a=$4,200
Y=4200+0.074X
If 80,000 kilometers were driven during the year,the total cost is computed thus:
Y=$4200+($0.074*80000)
Y=$4200+$5920
Y=$10,120
