Answer:
No, they wouldn't.
Explanation:
Any extra compensation to former stockholders of an acquired company which is based on post-combination share price or post-combination profits cannot be recognized as adjustments in the price of business combinations.
The reason for this is that changes in the fair value of contingent consideration (in case something happens) after the company has been acquired, e.g. achieving certain profits or stock price, are not considered period adjustments, therefore they cannot be included in the cost of the business combination (acquisition).
Answer:
Free cash flow = $2.25 million.
Explanation:
We know,
Free cash flow = Operating income ×( 1 - tax rate) + depreciation - net working capital.
Given,
free cash flow = ?
Operating income = $2.75 million
tax rate = 40%.
depreciation = $1.20 million.
net working capital = $0.6 million.
Putting the values into the formula, we can get
Free cash flow = [Operating income ×( 1 - tax rate) + depreciation - net working capital] million.
Free cash flow = [$2.75 ×( 1 - 40%) + $1.20 - $0.6] million.
Free cash flow = ($2.75 × 0.6 + $1.20 - $0.6) million.
Free cash flow = ($1.65 + $1.20 - $0.6) million.
Free cash flow = ($2.85 - $0.6) million.
Free cash flow = $2.25 million.
The three primary aspects
of a free market could include private ownership of everything for sale,
free-floating forces of supply and demand, and a man secretly in charge of
everything. <span>A free market economy is a type of economic system whereby supply and demand,
with a minimum of involvement on the part of a government drive the forward
movement of the economy.</span>
Financial records, A company’s competitors. Got it from quizlet!
