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Softa [21]
3 years ago
7

Pacific West Utility has made a takeover offer to the shareholders (51% of the shares) of San Diego Edison. The board and manage

ment are concerned about the ability of Pacific West to manage San Diego Edison and have solicited the help of Western Power. Western Power will make a tender offer to the shareholders of San Diego Edison that is $1.00 more than Pacific West's offer. Which of the following statements is true?
a. Western Power must comply with the Williams Act.
b. San Diego Edison must comply with the Williams Act.
c. Pacific West need not comply with the Williams Act.
d. The Williams Act is not applicable.
Business
1 answer:
bazaltina [42]3 years ago
4 0

Answer: a. Western Power must comply with the Williams Act.

Explanation: The Williams Act was passed into law in 1968 and is a federal defining the rules of acquisitions and tender offers in response to hostile attempts at takeovers from corporate raiders who make cash tender offers for stocks they owned. These offers often destroy value since they force stockholders to tender stocks on a shortened timetable and as such, the Williams Act also includes time constraints specifying the number of days to make a decision and also the least amount of time such cash offers may be open. In accordance with the Act, Western Power must follow the tenets stipulated within the Act.

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Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor
WARRIOR [948]

Answer:

$93,750

Explanation:

Required: "<em>Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours."</em>

<em />

Total estimated overhead costs (A) = 150,000

Total labor hours (B) = 15,000 + 9,000 = 24,000

Overhead allocation rate (C) = A/B = 150,000/24,000

Overhead allocation rate (C) = $6.25 Per labor hour

Total labor hours used by Fabric case (D) = 15,000 Hours

Overhead assigned to the fabric case (C*D) = $6.25 Per labor hour * 15,000 Hours = $93,750

5 0
3 years ago
Granite Construction Company is considering selling excess machinery with a book value of $175,000 (original cost of $315,000 le
aleksandr82 [10.1K]

Answer:

Sell option is preferred.

Explanation:

The decision whether to lease out the machinery that is surplus to requirement or sell outrightly is dependent on the differential analysis performed below.In the analysis I have compared the profits under each option in order to guide the final decision:

Differential analysis as at 7th November(Sale or lease option)                      

                                                                         Sell option              lease option

revenue   from sell/lease option                        $180,000                 $200,000

Brokerage commission(5%*$180,000)                 ($9,000)                        -

costs of repairs,insurance and property taxes          -                        ($34,400)

Profits                                                                        $171,000              $165,600

The sell option provides $5400($171,000-$165,600) than the lease option,hence the sell option is preferred.

One would have expect that the lease option since it has more revenue to preferable but the costs of repairs,insurance and property taxes were also on the high side

   

5 0
3 years ago
You are holding a stock that has a beta of 1.85 and is currently in equilibrium. The required return on the stock is 28.95%, and
Karo-lina-s [1.5K]

Answer: 41.90%

Explanation:

First calculate the risk free rate:

Required return = risk free rate + beta * (Market return - risk free rate)

28.95% = rf + 1.85 * (18% - rf)

28.95% = rf + 33.3% - 1.85rf

28.95% = -0.85rf + 33.3%

0.85rf = 33.3% - 28.95%

rf = 4.35%/0.85

rf = 5.12%

New required return;

Required return = risk free rate + beta * (Market return - risk free rate)

= 5.12% + 1.85 * (25% - 5.12%)

= 41.90%

3 0
2 years ago
Use your notes to explain how prices affect demand.
abruzzese [7]

Answer:

Amount of a product people purchase at various prices. ... There exists an inverse relationship between price and quantity demanded. As the price of a good or service goes up, the number sold (quantity demanded) goes down. As the price of a good or serve goes down, the number sold (quantity demanded) goes up.

7 0
2 years ago
Superior has provided the following information for its recent year of operation: The common stock account balance at the beginn
yKpoI14uk [10]

Answer: $22000

Explanation:

The amount of Superior's dividend declarations during its recent year of operation will be calculated thus:

Ending retained earnings ($91000) = Beginning retained earnings ($75000) + Net income ($38000) - Dividend declared

$91000 = $113000 - Dividend declared

Dividend declared = $113000 - $91000

Dividend declared = $22000

Therefore, Superior's dividend declarations during its recent year of operation is $22000

7 0
2 years ago
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