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3 years ago

According to When to Ally, When to Acquire:

1 answer:

5 0

Answer: b) When the resources are similar in both the target and acquiring firms, an acquisition would be more appropriate so that there is more control over the resources.

Explanation:

According to When to Ally, When to Acquire, it is best to embark on an Acquisition drive if the company being acquired uses similar resources to the one buying.

That way Acquisition will bring both resources together and lead to a command of a larger market share and profit margin and less competition.

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(Cost of debt) Belton Distribution Company is issuing a $1 comma 000 par value bond that pays 8.9 percent annual interest and

ioda

Answer:

After tax cost of debt is 7.69%

Explanation:

The after tax cost of debt can be computed by first of all determining the pre-tax cost of debt .

The pre-tax of debt is the yield to maturity computed using the rate formula in excel as follows:

=rate(nper,pmt.-pv,fv)

nper is the number of times the bond would pay coupon interest over the entire bond life ,which is 15 years multiplied by 2=30

pmt is the semi-annual interest which is $1000*8.9%/2=$44.5

pv is the current price of the bond at $962

fv is the face value of the bond at $1000

=rate(30,44.5,-962,1000)=4.69%

this is the semi-annul yield ,annual yield is 9.38%

The 9.38% is the pretax

after tax cost of debt=9.38%*(1-0.18)=7.69%

0.18 is the 18% tax rate

5 0

3 years ago

Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2017, Sheffield reacquired 113 shares at

Svetradugi [14.3K]

Answer:

The journal entries for the given economic events are given below:

Date Account Title Debit Credit

7/1/17 Treasury Stock (113 X $88) 9,944

Cash 9,944

9/1/17 Cash (62 X $94) 5,828

Treasury Stock (60 X $88) 5,280

Paid-in Capital from

Treasury Stock 548

(Paid in capital from Treasury Stock = 5828 - 5280 = 548)

11/1/17 Cash (51 X $86) 4,386

Paid-in Capital from

Treasury Stock 102

Treasury Stock (51 X $88) 4,488

(Paid in capital from Treasury Stock = 4488 - 4386 = 548)

3 0

2 years ago

In 2016, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients andearned $25,000. The client

Artemon [7]

Answer:

$27,333.33

Explanation:

The computation of the amount of income reported is shown below:

= Provided services to the customer + Payment received × number of months ÷ given number of months

= $25,000 + $12,000 × 7 months ÷ 36 months

= $25,000 + $2,333.33

= $27,333.33

The seven months is calculated from the June 1 to December 31. We assume the books are closed on December 31

7 0

3 years ago

Can I get an example of a run on sentence

Marta_Voda [28]

An example of a run on sentence is: I love to do gymnastics I would do it every single day if I could.

8 0

3 years ago

Read 2 more answers

Charleston Corporation operates a branch operation in a foreign country. Although this branch operates in euros, the U.S. dollar

dimulka [17.4K]

Answer: Remeasurement loss of $‭21,970

Explanation:

The figures will have to be converted from Euros to US$ for the calculation.

The relevant exchange rate will be the rate on the date of the transaction.

Amount Exchange rate $Amount

Opening cash 528,000 1.14 ‭601,920‬

Increase in Cash assets:

Sale of inventory 160,000 1.20 192,000

688,000 793,920‬

Decrease in cash assets:

Acquisition of warehouse 300,000 1.14 (342,000)

Purchase of inventory 100,000 1.18 (118,000)

Transfer to parent 10,000 1.18 (11,800)

Ending net cash assets 278,000 ‭ 322,120‬

Remeasurement gain(loss) at 31 December = Ending net cash assets at current rate - Ending net cash assets

= (278,000 * 1.08) - 322,120

= ‭300,240‬ - 322,120

= ($21,970)

<em>Options are not for this question. </em>

7 0

3 years ago