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Artist 52 [7]
3 years ago
6

Prior to the merger, Firm A has $1,250 in total earnings with 750 shares outstanding at a market price per share of $42. Firm B

has $740 in total earnings with 220 shares outstanding at $21 per share. Assume Firm A acquires Firm B via an exchange of stock of 0.5 share of A’s stock for each share of B's stock. Both A and B have no debt outstanding and the merger does not create any synergy. What will the earnings per share of Firm A be after the merger? A) $2.10 B) $1.67 C) $3.36 D) $2.05 E) $2.31
Business
1 answer:
Julli [10]3 years ago
6 0

Answer:

E) $2.31

Explanation:

Shares offered to Firm B = Shares outstanding * 0.5

= 220 * 0.5

= 110 shares

Total shares of firm A after merger = Shares outstanding before merger + Shares offered to Firm B

= 750 + 110

= 860 shares

Total earnings of firm A after merger = $1,250 + 740

Total earnings of firm A after merger = $1,990

Earnings per share of firm A after merger = Total earnings of firm A after merger / Total shares of firm A after merger

Earnings per share of firm A after merger = $1,990 / 860

Earnings per share of firm A after merger = $2.31 per share

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Roy dies and is survived by his wife, Marge. Under Roy’s will, all of his otherwise uncommitted assets pass to Marge. Based on t
tatiyna

Answer:

Explanation:

a.) R, M and M's sister A claims equivalent tenure in timberland worth $1.2 million. Despite the fact that A completed the first price tag, military conclusion is constrained to the degree of R's offer in Timberland. So military reasoning is $0.4 million (1/3 of $1.2 million)

Therefore, R's martial deduction is $0.4 million.

b.) Living arrangement worth $900,000 is claimed by R and M as occupants by the sum with right of survivor-ship. Despite the fact that R outfitted unique buy $450,000 ($900,000/2) will be remembered for Roy's gross domain and this sum speaks to the property that is given to M for reason for martial deduction.

In this way, R's martial deduction is $450,000

c.) Insurance policy on R's life is claimed by M and payable to her as the assigned recipient. It won't be remembered for net bequest of R and arrangement measure of $1 million isn't qualified for martial deduction. This is on the grounds that, martial deduction is permitted distinctly for property that is remembered for the perished companion's gross bequest.

Therefore, R's martial deduction is $0 million

d.)Insurance policy on R's life worth $500,000 possessed by R and M as the recipient. Despite the fact that the assigned recipient for protection arrangement on R's life is M (Roy's significant other), the sum is to be remembered for R's gross domain as it is possessed by R. This sum speaks to the property that is given to M for motivations behind martial deduction

Therefore, R's martial deduction is $500 million

e.) Dissemination from qualified pension plan of $1.6 million. Whole measure of $1.6 million will be moved to R's better half and it will be qualified for martial deduction

Therefore, R's martial deduction is $1.6 million

6 0
3 years ago
The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:_______.
VikaD [51]

Answer: Investing activities

Explanation:

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is referred to as the investing activities.

The operating activities has to do with the reporting of cash payment for wages. The financing activities has to do with reporting issuance cash for the common stock.

3 0
3 years ago
A project manager may also be the project champion. true
KiRa [710]

The statement is true. A project manager may "also" be the project champion. But it is not mandatory. But there are possibilities that the project manager is also an expert the in project he is handling. Thus, the above statement is true. If the statement would have been - The project manager will be or needs to be the project champion, then it would be false statement.

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3 years ago
The information needed to make the journal entries to record the wages and salaries expense comes from
babymother [125]
The answer is The Payroll Register.
5 0
3 years ago
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Sheffield Company had sales in 2019 of $1,842,400 on 65,800 units. Variable costs totaled $1,184,400, and fixed costs totaled $4
vlada-n [284]

Answer:

Assuming that no changes happened, 2020 sales and expenses should be similar to 2019's:

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Total sales                   $1,842,400                   $28

Variables costs           <u>($1,184,400)</u>                  <u>($18)</u>

Contribution margin    $658,000                    $10

Fixed costs                 <u>($498,000)</u>                  <u>($7.57)</u>

Operating income       $160,000                    $2.43

5 0
3 years ago
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