The share price for the merged firm is $48.09. Therefore, the correct option is C
<u>Explanation:</u>
(a)-Net Present Value (NPV)
Net Present Value (NPV) = Market Value of the Target Firm + synergistic benefit – Acquisition Value
= [3600 Shares multiply $19] plus $16700 minus [3600 Shares multiply $21]
= $68400 plus 16700 minus 75600
= $9500
“Net Present Value (NPV) = $9500
(b) Share Price
Share price = [Market Value of the Bidding firm + NPV] / Number of shares of the Bidding firm
= [( 8700Shares multiply $47) plus $9500] / 8700 Shares
= [$408900 + 9500] / 8700 Shares
= $48.09 per share
“Share Price = $48.09 per share”
Answer:
See explanation
Explanation:
See the image below to get the appropriate answer:
Answer: The correct answer is "c.Crow will have a business deduction of $120,000 for the value of the services Mary will render.".
Explanation: With respect to the transfers: Crow will have a business deduction of $120,000 for the value of the services Mary will render.
This is calculated by the difference between the value of the property contributed by Earl $1 600 000 and the value of the property contributed by Mary $1 480 000.
1 600 000 - 1 480 000 = $ 120 000.
<h2>Joshua would lose and Sue would benefit from unanticipated inflation.</h2>
Explanation:
- Both Joshua and Sue are associated with fixed pension and fixed interest respectively.
- Now the value of money goes down due to inflation
- So to live as usual, Joshua need to spend some extra money. But considering the fixed income, it's a lose to Joshua
- Whereas Sue is associated with fixed interest of mortgage. She is benefited because, though the inflation has changed the value of all other products, but the fixed interest rate does not change.
- "Fixed-rate mortgage holders are inflation winners", says "Thoma, professor of economics at the University of Oregon"
Answer:
Marginal product: 118
Marginal product is 1.68 times average product
New average product: 82
Explanation:
Marginal product is the difference that we found after we add one more unit of production into the business, this means the amount of products that we produce more of, once we hire a new worker or add a new machine, in this case marginal product is 118 units more by hiring an additional worker, and the marginal product divided by the last average product is 1.68 times more, and the new average product would be 328 between 4 which is the new number of workers, which results in 82.