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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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The Rodriquez family is determined to purchase a $250,000 home without incurring any debt. The family plans to save $2,500 a qua
dexar [7]

Answer:

70years

Explanation:

The future value formula for compound interest, after n interest period is

F=P(1+i)^n

where i is the interest rate per period in decimal form and P is the principal or present value.

The Rodriquez family is determined to purchase a $250,000 home so

F=$ 250,000

The family plans to save $2,500 a quarter for this purpose and expects to earn 6.65 percent.

This implies that:

i =  \frac{0.0665}{4}  = 0.0016625

For t years, the number of compounding periods will be;

n = 4t

We fixed the values into the formula and solve for t.

250000=2500(1+0.0066125)^ {4t}

\frac{250000}{2500} =(1.0066125)^ {4t}

100=(1.0066125)^ {4t}

100=(1.0682)^ {t}

t =  log_{1.0682}(100)

t = 69.8

It will take approximately 70years

3 0
3 years ago
Which of the following statements is not accurate descriptions of the business market? Mrs. Phillip, a retail buyer for Blooming
Natali [406]

Answer:

Mrs. Phillip, a retail buyer for Bloomingdale's, does all the shopping for her family at the same store.

Explanation:

The business market is the market where you can sell your product and services to the other businesses so it can be used as a raw material for the other business in order to manufacture the products. And, the other reason is to purchased the products and resell them.

So based on the given statements, the first option is considered as in the remaining statements there are business transactions but in this only one person i.e. retail buyer is considered

8 0
3 years ago
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Ivan
Alona [7]

Answer:

Requirement: Prepare the entry to record the sales transactions and related taxes.

1.   Date      Account Titles and Explanation     Debit     Credit

   Apr. 10   Cash                                                 $30,975

                        Sales Revenue                                          $29,500

                        Sales Tax Payable                                     $1,475

                 (To record Cash sales along with sales tax)

2. Date      Account Titles and Explanation    Debit     Credit

   Apr. 15   Cash                                                 $18,530

                        Sales Revenue                                          $17,000

                        Sales Tax Payable                                     $1,530

                  (To record Cash sales along with sales tax)

<u></u>

<u>Workings</u>

- Total Sales along with sales tax = $18,530, Sales Tax Rate = 9%. Sales Tax Amount = 18530*(0.09/1.09) = $1,530

- Sales Without Sales Tax = $18,530 - $1,530 = $17,000

7 0
3 years ago
Which business model has traditionally been used by magazines
Andrej [43]
According to Quora dot com, US magazines are viewed as historically dependent on advertising revenue hence why subscriptions to magazines are historically very low as advertising is used to subsidise cover price or subscription cost.

With the general collapse of print publications in the US, particularly led by the drying up of physical newsstand presence, magazines have a harder time getting into consumer's hands. This means that advertisers are less likely to spend in a publication (readership decreasing) and then advertising revenues go down, making magazines less and less profitable.

I realize this is quit lengthy so I'd sum it up to saying the business model for magazines has traditionally been the selling of advertising space ... Not sure if this is what you're looking for
7 0
3 years ago
Read 2 more answers
You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter prog
EleoNora [17]

Answer:

Hold meeting with employees, volunteers and representatives of other local shelters and listen carefully as they brainstorm ideas.

Explanation:

A leader can be defined as an individual who motivates and inspires a group of people towards achieving a common goal. A good leader must possess the following characteristics:

1) A leader must be a good communicator, he/she must be able to deliver information to the group in an orderly manner.

2) A good leader must be able to inspires others.

3) A leader must lead with honesty.

4) A leader must be able to make good decisions.

5) A good leader should be able to account for his/her various activities.

8 0
4 years ago
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