Answer:
A. 3,789
B. 100%
C.5,000
Explanation:
(a) Total market ($'000) = 310 + 725 + 405 = 1,440
Firm 1 share = 310 / 1,440 x 100 = 21.53%
Firm 2 share = 725 / 1,440 x 100 = 50.35%
Firm 3 share = 405 / 1,440 x 100 = 28.12%
HHI = (21.53)2 + (50.35)2 + (28.12)2 = 3,789
(b) Since there are only 3 firms in market, therefore the four-firms concentration ratio will be 100% b
(c) Total revenue share of the two firms = (310 + 405) / 1440 x 100 = 49.65%
Post-merger HHI = (49.65)2 + (50.35)2 = 5,000
Yes. If the guideline considers any post-merger HHI above 1800 as highly concentrated market, this merger will be probably attempt to block a horizontal merger between two firms with sales.
Answer: $27000
Explanation:
The amount of goodwill impairment on December 31, 2020 will be:
Amount if goodwill = Net book value - Fair value
= $792,000 - $765,000.
= $27000
Therefore, the amount of Goodwill is $27000
Answer:
c. Only new securities are sold in the primary market.
Explanation:
- Primary markets is where securities are sold for the first time. Secondary market is a place (physical o virtual place) where securities are renegociated.
- As an example, think about a company which is increasing its capitalization and wants to emit new stocks: it would do it in the primary market.
- On the other hand, if some of the members of the company wantsto buy more stocks from that company, unless the company is emiting new stocks, he or she would have to buy the stocks in the secondary market.
The discount lost account is used under the net method for inventory.
<h3><u>
What is discount?</u></h3>
- When a security is trading for less than its intrinsic or basic value, it is said to be trading at a discount in the world of finance and investment.
- When a bond's price is trading below its par value, or face value, in the fixed-income market, a discount is present.
- The extent of the discount is equal to the difference between the price paid for a security and its par value.
- Bonds may trade at a discount for a variety of reasons, such as rising interest rates, problems with the underlying company's credit, or riskiness when compared to comparable bonds.
The discount rate, an interest rate used to calculate the time worth of money, should not be confused with a discount.
Know more about discount with the help of the given link:
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