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Alina [70]
3 years ago
11

Three Guys Burgers, Inc., has offered $18 million for all of the common stock in Two Guys Fries, Corp. The current market capita

lization of Two Guys as an independent company is $15.9 million. Assume the required return is 8.1 percent and the synergy from the acquisition is a perpetuity.
What is the minimum annual synergy that Three Guys feels it will gain from the acquisition?
Business
1 answer:
Pavlova-9 [17]3 years ago
3 0

Answer:

Annual synergy gain = $ 178,500

Explanation:

Value of synergy gain from acquisition = 18 - 15.9 = 2.1 million

Annual synergy gain = 2.1 *.085 = .1785 million or $ 178,500

Annual synergy gain = $ 178,500

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Which Sunshine Apartment rental policy is considered legal under the 1968 federal fair housing laws? A) The lease of any tenant
IceJOKER [234]

Answer: B) Owners can refuse to rent to prospects who have long hair and ride motorcycles.

Explanation:

The 1968 Federal Fair Housing Laws established that it is illegal to discriminate or refuse housing to a person based on <em>race or color; religion; national origin; familial status or age—includes families with children under the age of 18 and pregnant women; disability or handicap, or sex. </em>

Option A would be considered as a violation of the no discrimination based on race stipulation of the law.

Option C would be a violation of the no discrimination based on sex stipulation of the law.

And Option D would be a subtle violation but nonetheless a violation of the no discrimination based on race stipulation.

Option B is the only option that doesn't seem to break any of the stipulations of the 1968 act.

5 0
3 years ago
g The Sharpe Ratio measures: Select one: The risk of an investment The expected return of an investment The unexpected return; h
NISA [10]

Answer:

The extra return above the risk-free rate adjusted for total risk

Explanation:

The Sharpe Ratio was developed by William Sharpe, and it is used by investors to guage the return in an investment against risk.

To calculate it we find the excess return above risk free rate And divide it by the total risk.

This isolates the returns that are attributed to risk taking activity.

A risk free transaction for example is the yield on government treasury bills.

We use only returns associated with risk to get a better picture of risk adjusted return. The higher the ratio the better.

3 0
3 years ago
What costs are considered “relevant” and which are considered “irrelevant “to a business
Klio2033 [76]

Answer:

Relevant costs are costs that will be affected by a managerial decision. Irrelevant costs are those that will not change in the future when you make one decision versus another.

Explanation:Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.

4 0
3 years ago
Pequeno Pesos Restaurants, Inc. is a chain of restaurants featuring authentic, affordable Mexican cuisine around the United Stat
blagie [28]

Answer:

A. Information published by the U.S. Bureau of the Census that identifies which regions of the United States are experiencing the most rapid growth in Mexican-American population.

Explanation:

As the restaurant is famous and serves the Mexican cuisine, it needs data that will provide information about the interests of people in Mexican Cuisine.

The information published by the US Bureau about the population of Mexican citizens growing will help the restaurant identify the areas where it will find its most probable customers for the Mexican Cuisine.

The census will provide the maximum information about the regions with the population with Mexican people as the chances to like Mexican cuisine is maximum with Mexican population.

7 0
3 years ago
Thomlin Company forecasts that total overhead for the current year will be $11,742,000 with 164,000 total machine hours. Year to
Basile [38]

Answer:

d.$72 per machine hour

Explanation:

Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity

therefore,

Predetermined overhead rate = $11,742,000  ÷ 164,000

                                                  = $71.598 or $72

The predetermined overhead rate based on machine hours is $72 per machine hour.

3 0
3 years ago
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