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:
Hie, the <em>price schedule is missing</em> from your question however the important principles are explained below.
a. The optimal order quantity
Optimum order quantity is the order level that results in minimum ordering costs and holding costs.
Optimum order quantity = √ (2 × Annual Demand × Cost per order) / holding cost per unit
b. The number of orders per year.
orders per year = Annual Demand / optimal order quantity
This calculates the number of orders to be placed during the year at the optimum order quantity.
Answer:
Dr interest expense $46665
Cr cash $41,175
Cr discount on bonds payable $5,490
Explanation:
The discount on the bond issuance =face value-cash proceeds
face value is $915,000
cash proceeds is $860,100
discount on bond issuance=$915,000-$860,100=$54900
The discount would be amortized over 5 years *2=10 periods
amortization of discount=54900
/10=$5490
The cash interest would be credited to bank i.e $41,175
The discount on bonds would be credited with $5490
The interest expense would be debited with $46665
($41,175+$5,490)
Choose 9 billion dollars is the correct answers