Answer:
<em>Therefore the gain or loss to the current shareholders of Goodday if the merger provides no synergy is -$10
</em>
Explanation:
Given:
<em>The Total debt remains same after merger at Pre-merger value = $80 + $40 = $120
</em>
<em>The Value of entities together in Economic state 1 = $160 + $20 = $180
</em>
<em>
Net equity in economic state 1 = Value of entities – total debt
</em>
<em>
= $180 - $120 = $60
</em>
<em>Then,</em>
<em>
The Value of entities in Economic state 2 = $40 + $80 = $120
</em>
<em>
Net equity in economic state 2 =
</em>
<em>= $120 - $120 = $0
</em>
<em>
The Both states are equally possible.
</em>
<em>
Expected value of combined entity = ($60 + $0)/2 = $30
</em>
<em>
Market value of Goodday equity before merger = $40
</em>
<em>
Synergy effect = Expected value of combined entity - Market value of Goodday equity before merger= $30 - $40 = -$10
</em>
Answer:
Low tax collection, low working population
Explanation:
Brain drain is a condition where a country loses its population through migration. Generally, this happens with the low developing countries, because people try to search for jobs in developed countries. Canada will lose tax revenue collection and low working population as a result of the brain drain. Government is the most important stakeholder which will be affected by brain drain apart from that; hospitals and industrial units will be affected by the brain drain.
Answer:
The correct answer is letter "D": Changing prices result in an inconsistent and/or inaccurate estimate of inflation.
Explanation:
The Consumer Price Index or CPI is considered the benchmark inflation guide for the U.S. economy. It uses a basket-of-good approach that aims to compare a consistent base of products from year to year. Focusing on products that are bought and used by consumers daily.
<em>The drawback of the CPI is the gap between the time in which information about those prices are collected and the time the CPI is useful to assess. Typically the prices are obtained monthly or bimonthly against the report of the CPI done each quarter or yearly. As CPI is one of the main measures of inflation, the previously explained could lead to inaccurate estimations of inflation.</em>
Diversity should not be applauded because the people of a nation should be from that nation