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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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4 0
3 years ago
The perimeter of the base of the Washington monument is 220.5 feet. If the width is equal to its length, what are the dimensions
natita [175]

Answer:

both the Width and Length of the base are equal to 55.125 ft

Explanation:

Based on the information provided by the question we know that the width is equal to the length, therefore the base of the Washington Monument is a Square. The Perimeter of a Square is equal to the addition of all four sides (length and width).

P = W+W+L+L

Therefore since we know that the perimeter is 220.5 and all 4 sides are equal then we can <em>divide</em> the perimeter by 4 in order to know the size of the the sides

220.5 / 4 = 55.125 ft

Finally we can see that both the Width and Length of the base are equal to 55.125 ft

7 0
3 years ago
What is one way that students can develop managerial skills.
Law Incorporation [45]

One of the ways students can develop managerial skills is by making a schedule for a debate team.

<h3>How can managerial skills be developed?</h3>

Managerial skills comprises the know-how, knowledge and skill needed to coordinate or manage a group of people.

One of the ways that managerial skills can be acquired is by studying management course. For example, human resource management. Another way of acquiring managerial skills is by undertaking managerial roles.

To learn more about managerial skills, please check: brainly.com/question/14391250

#SPJ1

3 0
2 years ago
Suppose that in the second year her average total cost per dog is $35 and that $20 of that is associated with the variable cost.
jok3333 [9.3K]

Answer:

She should stay open, because the revenue of from dog grooming ($30 per dog), is still high enough to cover her variable cost of $20 per dog, even though she is operating at a loss.

Explanation:

Profit = Revenue - Total costs

Total costs = Fixed costs + variable costs

Profit = $30 - $35 = -$5 per dog

This shows she is operating at a loss of $5 per dog.

If a company does not make enough revenue to cover its total costs, then it is operating at a loss.

However such a company must consider its variable cost before deciding whether to shut down.

A company should only shut down if it is unable to make enough revenue to cover its variable cost.

If a company is operating at a loss but can at least cover its variable cost, then it should stay open at least in the short run.

6 0
3 years ago
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