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Nat2105 [25]
2 years ago
14

At a meeting to announce a merger with another company, which of the following buzzwords is a business leader MOST likely to use

to justify the decision?
Business
1 answer:
lora16 [44]2 years ago
6 0

Answer: The buzzword to be used is <u>synergy</u>

<u>Explanation:</u>

Synergy means that two or more than two organisations combine their efforts. They decide to cooperate with each other so that they can produce better results compared to what they produce when they are separate.

When one company decides to merge with the other company, they decide to combine their resources. They take combined decisions so that they can work for their own betterment and to improve the productivity.

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Giant Equipment Ltd. Is considering two projects to invest next year. Both projects have the same start-up costs. Project A will
klemol [59]

Answer: A.) Project A, because it has a higher present value than project B.

B.) Project B

Explanation:

Particulars --------- project A ----------- project B

Annual cash flow -- 42000 ------------ 48000

Interest rate --------- 12% ----------------- 12%

Number of years ---- 8 -------------------- 7

Calculating the present value of both projects using a financial calculator :

At 12% rate of return :

PV of project A = $233,677.77

PV of project B = $219,060.31

B.) At 14% rate of return:

PV of project A = $222,108.80

PV of project B = $234,656.04

7 0
3 years ago
The lower the user's switching costs:
JulijaS [17]

Answer:

more intense the competitive pressures posed by substitute products.

Explanation:

The lower the user's switching costs: the more intense the competitive pressures posed by substitute products.

Switching costs can be defined as the cost of a consumer switching from a product to a substitute good.

Therefore when such switching costs are low, it will be easier to switch from one product to another, implying that the competitive pressure from substitute goods are higher.

8 0
3 years ago
Read 2 more answers
A house sold for $950,000 with a sales commission rate of 7.5%. The listing brokerage received 50% of the total commission and t
aleksandrvk [35]

Answer:$14,250

Explanation:

The total commission recieved is

950,000 x 7.5% = $71,250

The listing brokerage and the selling brokerage both received 50% of that sum which is

71,250/2 = $35,625

The Sales person gets 40% of the Selling brokerage's cut which would be

35,625 x 40% = $14,250

8 0
3 years ago
A ________ transaction in the interbank market is the simultaneous purchase and sale of a given amount of foreign exchange for t
miskamm [114]

Answer:

Explanation:

A swap transaction in the inter bank market is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates. The purchase and sale are with the same counterpart. A swap may be considered a technique for borrowing another currency on a fully collateralize basis.

3 0
3 years ago
Assume that Lucas's marginal tax rate is 32 percent and his tax rate on dividends is 16 percent. If a dividend-paying stock (wit
kipiarov [429]

Answer:

The correct answer to the problem is 7.728%

Explanation:

Lucas marginal tax rate = 32 percent

Tax rate on dividends = 16 percent

Dividend yield of a dividend-paying stock (with no growth potential) = 9.20 percent.

To determine the interest rate a municipal bond have to offer for Lucas to be indifferent between the two investments from a cash flow perspective =

Dividend yield multiplied by ( 1- tax rate on dividends)

= 9.20% × (1 - 16%)

= 0.092 × (1 - 0.16)

= 0.092 × 0.84

= 7.728%

3 0
3 years ago
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