1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
viva [34]
3 years ago
12

The Master Manufacturing Company has just announced a tender offer for its own common stock. Master is offering to buy up to 100

% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. After the announcement of the offer, the stock closed on the NYSE up 2.50 at $18.75. A customer has 100 shares of Master stock in his cash account. The customer tells you that he wishes to "cash out" his position. You should recommend that the customer:
Business
1 answer:
ololo11 [35]3 years ago
6 0

Answer:

It should be recommended that the customer should sell long.

Explanation:

As the offer in the question is contigent on 64% of the tendered shares, this makes the tender be inappropriate if the customer wants to cash out the position.

The right step to take is by selling the long position that has a new higher market price.

Therefore, it should be recommended that the customer should sell long.

Note that to sell long implies that stocks or any other financial investment instrument are purchased now for the purpose of selling them at a higher future price in order to make a profit.

You might be interested in
On December 31, 2016 before adjusting entries, Accounts Receivable for Nickolas Company had a debit balance of $200,000, and the
Karo-lina-s [1.5K]

Answer:

b. The balance of the Allowance for Doubtful Accounts will be $22,000 after adjustment.

Explanation:

If credit losses are estimated at 1% of credit sales than balance of allowance for doubtful account after adjustment will be = $6,000 + $1,600,000 * 1%

= $6,000 + $16,000

= $22,000

4 0
2 years ago
Assume General Electric Company reports the following footnote in its 10-K report. December 31 (In millions) 2016 2015 Raw mater
True [87]

Answer:

$ 244 million

Explanation:

Calculation for how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory

Tax rate Amount (In millions)

LIFO $ 10,315.00 35% =$ 3,610.25

FIFO $ 11,012.00 35% =$ 3,854.20

Savings in taxes $ (697.00) $ (243.95)

Hence,

Savings in taxes=$ 3,610.25 million-$ 3,854.20 million

Savings in taxes=($243.95 million)

Savings in taxes=($ 244 million) Approximately

Therefore the amount that GE saved in taxes by choosing LIFO over FIFO method for costing inventory will be $ 244 million

6 0
2 years ago
Describe China’s strategy in Africa.
Lemur [1.5K]

Answer:

The strategy for China seems to be to use the resources that Africa has in its hands from the small groups that control parts of the continent in order to fund themselves as well as help increase revenue for the countries that allow them to do so.

Explanation:

8 0
2 years ago
PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST)
Aliun [14]

To create market stability.

6 0
3 years ago
What are renewable energy sources?
Molodets [167]

Energy sources that will never run out. Such as, light, air, and water. But it can be ruined. I didnt Google any of this. Please give me brainliest, I just need one more to lvl up!

3 0
2 years ago
Read 2 more answers
Other questions:
  • 1. Your roommate's long hours in chem lab finally paid off--she discovered a secret formula that lets people do an hour's worth
    15·1 answer
  • For most young people, working full-time and going to school are substitutes: You tend to do one or the other. When it’s tough t
    7·1 answer
  • Change champions are more likely to make mistakes:_________.
    5·1 answer
  • An example of a firm applying the overall cost leadership generic strategy in a value-chain activity would be to automate the pr
    15·1 answer
  • Jack currently works for a law firm full time and earns $60,000 a year. He is thinking of quitting his job to pursue a medical d
    7·1 answer
  • Nathan has $300 to open a checking account. He wants an account with the lowest fees. He plans on using the ATM machine, and his
    15·2 answers
  • Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer i
    15·1 answer
  • It is enough to describe the proposed business as a sole proprietorship in the business description
    14·2 answers
  • Juan earns a gross pay of $44,500. His employee benefits are 18% of his gross pay. What is the value of his benefits?
    8·1 answer
  • As a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!