Answer:
The answer is "Share offer is better".
Explanation:
Firstly Computing the value of the combined company:
The merger value = the market value of the B company + the market value of the T + synergically advantages
= shares issued * share price of company B + outstanding shares * price per share of company T + benefits for synergies
Number of new shares which have been created following the merger = the number of shares in the T *exchange ratio
The percentage price of the fusion company = the value of the fusion company /the share value of the fusion company
The per-share price of the combined company
The cash offer value = 16 dollars per share
Stock offer value = price of merged company share /2
Thus, share offer is better
Answer:
Projects Y and Z
b. Projects W and Z
c. Projects W and Y
Explanation:
CAPM equation : Expected return = Risk free rate + Beta x (Expected market return - Risk free rate)
W = 4% + [0.85 x (11% - 4%)] = 9.95%
X = 4% + (0.92 x 7%) = 10.44%
Y = 4% + (1.09 x 7%) = 11.63%
Z = 4% + (1.35 x 7%) = 13.45%
Projects Y and Z have an expected return greater than 11%
b. Projects W and Z should be accepted because its expected return is higher than the IRR
c. Project W would be incorrectly rejected because the expected rate of return is less than the overall cost of capital (i.e. 9.95 is less than 11). But its expected rate of return is greater than the IRR
Y would be incorrectly accepted because its expected rate of return is greater than the overall cost of capital but its expected rate of return is less than the IRR
Answer:
<h2>
Social security</h2>
Explanation:
<em>A transfer payment includes a donor and a recipient and the donor gives up something without receiving any thing in return. </em>
A transfer payment is redistribution of wealth and income by government without receiving any good or service in return. Such payment is on exhaustive because neither they absorb resources nor create any output. Social security, welfare and financial aid are examples of transfer payment. Transfer payments are not included in government spending o calculate gross domestic product.
In economics transfer can be made between entities and individual such as governmental bodies and private companies, it cab be involuntary and voluntary.
I found the options online. it would be to monitor the results