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Nostrana [21]
2 years ago
8

In a business combination in which an acquiring company purchases 100% of the outstanding common stock of another company, if th

e fair value of the net identifiable assets acquired exceeds the fair value of the consideration given. The excess should be reported as a ___________.
Business
1 answer:
spin [16.1K]2 years ago
4 0

Answer:

It will be reported as gain.

Explanation:

If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>

It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment

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If you could choose anything to be? (must be in essay)​
Law Incorporation [45]

Answer:

You can be one of your favorite heros.i.e avengers, marvels, etc. Or u can also choose some famous personalities such as Albert Einstein, Issac Newton, leonardo da vinchi, George Washington, etc

Even give a reason why did u choose them

Maybe that would be because of their contributions or because of their sense of humor. Like that..

5 0
2 years ago
A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Proje
aliina [53]

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

a.

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

b.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

c.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

d.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

4 0
3 years ago
CDB stock is currently priced at $82. The company will pay a dividend of $4.65 next year and investors require a return of 10.9
lidiya [134]

Answer:

g = 0.05229 or 5.229% rounded off to 5.23%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

  • D1 is dividend in year 1 or the next dividend
  • g is the growth rate
  • r is the required rate of return

Plugging in the available values for P0, D1 and r, we can calculate the value of g.

82 = 4.65  /  (0.109 - g)

82 * (0.109 - g) = 4.65

8.938 - 82g  =  4.65

8.938 - 4.65 = 82g

4.288 = 82g

g = 4.288 / 82

g = 0.05229 or 5.229% rounded off to 5.23%

8 0
2 years ago
If Malaysian companies are highly efficient in the production of textiles and U.S. companies are highly efficient in the product
rosijanka [135]

If Malaysian companies were more efficient in textile production and the U.S. was more efficient in computer software, they should sign a <u>Free trade agreement. </u>

<h3>What would a free trade agreement do?</h3>

A free trade agreement allows for countries to be able to trade without any restrictions.

Implementing a free trade agreement here would allow funds to freely move to Malaysia for textile production, and to the U.S. for software companies.

In conclusion, this is a free trade agreement.

Find out more on free trade agreements at brainly.com/question/2201430.

3 0
2 years ago
The rate of return on the common stock of Flowers by Flo is expected to be 15 percent in a boom economy, 7 percent in a normal e
sertanlavr [38]

Answer:

the Expected rate of return will be 8.2%

the variance will be 0.001296

Explanation:

We will calculate the Expected Rate of Return which is the sum of the wieghted return based on their probabilities:

return of 0.15 probability 20%  =  0.03

return of 0.07 probability 70% =  0.049

return of 0.03 probability 10% =   0.003

              expected return        =   0.082 = 8.2%

Now to calculate the variance we do:

∑(rk-ERR)^2 x pk

The sum of the difference between the expected rate and the escenario rate, power two, and multiply by their posibility

(0.15-0.082)^{2}\times0.20+(0.07-0.082)^{2}\times0.70+(0.03-0.082)^{2}\times0.10

the variance will be: 0.001296

3 0
2 years ago
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