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shepuryov [24]
3 years ago
5

Can we use the acquiring firms WACC to value the target firm? If so what would be the reason?

Business
1 answer:
kondor19780726 [428]3 years ago
6 0
WACC is the weighted average cost of capital, and can be used to determine the company's discounted cash flow, (current value according to its estimated future cash flows). <span>All sources of capital, including </span>common stock<span>, </span>preferred stock<span>, </span>bonds<span> and any other </span>long-term debt<span>, are included in a WACC calculation. A firm’s WACC increases as the </span>beta<span> and </span>rate of return<span> on </span>equity<span> increase, as an increase in WACC denotes a decrease in </span>valuation<span> and an increase in </span>risk.<span>
</span>
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Rama09 [41]

Answer:

B. inform her divisional merchandiser manager of the proposal

Explanation:

Since in the question it is mentioned that the Janine buys from each season also she knows that this thing would become benefiical what European tourists are wearing and applying this in an assortment for the customers that are targeted

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3 0
3 years ago
A short forward contract that was negotiated some time ago will expire in 4-month and has a delivery price of $42.25. The curren
padilas [110]

Answer:

the  value of the short forward contract is -0.49

Explanation:

the computation of the value of the short forward contract is shown below:

= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)

= ($42.25 - $42.75)× e^(-7.90% × 4÷12)

= -0.49

Hence, the  value of the short forward contract is -0.49

Therefore the same should be considered  

8 0
3 years ago
When footwear has greater traction, what does this mean?
timofeeve [1]

Answer:

B

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Think of the football cleats on the field.  They have better grip which is why they don't slip as often as someone on a basketball court would.

8 0
3 years ago
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Corporation goes in the blank
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If a society wants to get the most out of the available resources, money should be spent on pollution control​ (A)​ until pollut
Ksju [112]

Answer: Option C  

           

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In the given case, we want to use the available resources at their best, therefore, the money on pollution control should be spent only until the benefit of spending one more dollar is greater than the cost of doing so.

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3 years ago
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