1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Brut [27]
3 years ago
13

The following happened in a recent M&A transaction:

Business
1 answer:
MAVERICK [17]3 years ago
3 0

Answer: D. A deferred tax asset equal to $52.5 million

Explanation:

Original book basis of PP&E = $650 million

Fair market value = $800 million

Then, we calculate the difference between the fair market value and the original book value which will be:

= $800 million - $650 million

= $150 million

Then, the deferred tax liabilities will be:

= 35% × $150 million

= $ 52.5 million

Therefore, assuming a corporate tax rate of 35% for book purposes, the company should record a deferred tax asset equal to $52.5 million.

You might be interested in
Crisp Cookware's common stock is expected to pay a dividend of $3 per share at the end of this year; its beta is 0.9; the risk-f
slavikrds [6]

Answer:

The answer is $41.21

Explanation:

Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%

Cost of Equity = D1/Current Stock Price + Growth Rate

10.6% = $3/$40 +g

g = 3.1%

Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21

7 0
3 years ago
The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the
insens350 [35]
The most likely result of this price control would be that the <span>demand for bread will fall, which could result in an excess supply. his excess supply in the market would ultimately force the hand of the manufacturers to stop the production of bread. I hope that this is the answer that has come to your help.</span>
3 0
3 years ago
Read 2 more answers
The following information was available for the year ended December 31, 2019: Net sales $ 894,250 Cost of goods sold 616,850 Ave
iogann1982 [59]

Answer:

Explanation:

Net sales - $894,250

Cost of Goods - $ 616850

Average account receivable - $40,650

Account receivable at year end - $28200

Average inventory - $182000

Inventory at year end - $158,000

Inventory turn over

Cost of Goods sold / Average inventory for the period

616850/182000= 3.40 times

No of days sales in inventory = Ending inventory / Cost of Goods sold *365

158000/616850*365 = 93.5 days

Account receivable turnover = net credit sale / average receivable

894250/40650=21.9

No of days sales in account receivable -

Receivable at year end/total credit sales*365

28200/894250*365= 11.5 days

7 0
3 years ago
Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year. At the end of th
FromTheMoon [43]

Answer: 4%

Explanation:

From the question, we are informed that Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year and that at the end of the year, retiree benefits paid by the trustee were $28 million and cash invested in the pension fund was $32 million.

Based on the above scenario, the percentage rate of return on plan assets goes thus:

Opening balance of plan assets 1200

Add:- Actual return = 48

Add:- contributions = 32

Less :- retiree benefits = -28

Closing balance of plan assets = 1252

It should be noted that the actual return is the balancing figure which is calculated as:

= 1252 + 28 - 1200 - 32

= 48

The percentage rate of return on plan assets will now be:

= 48/1200

=0.04

= 4%

4 0
3 years ago
When is humor beneficial to a team?
murzikaleks [220]

humor is beneficial to a team because you can use it to lighten up the mood

4 0
2 years ago
Read 2 more answers
Other questions:
  • Dwayne worked for a 500-employee manufacturer in the rust belt. the company closed his plant with no advance notice to employees
    9·1 answer
  • Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an
    14·2 answers
  • Carlos was born with cataracts in both eyes. Even though they were removed when he was 5, his lack of visual experiences during
    11·2 answers
  • You are a project consultant for the ACME Company and are helping to develop an agile method using Scrum. The company has always
    7·1 answer
  • According to liquidity preference theory, if there were a surplus of money, then A. the interest rate would be above equilibrium
    10·1 answer
  • Which of the following best describes the type of loss covered by the Spoilage Damage insuring agreement of the ISO Equipment Br
    7·1 answer
  • Both international and domestic travel markets are important for the economy of a country since the international travelers inje
    9·1 answer
  • A company is selling cookies for $3 per bag. The ingredients costs $9.3 and can make 37 bags with the ingredients. How much prof
    7·1 answer
  • 10. Parmentier Company uses the weighted-average method in its process costing system. The Molding Department is the second depa
    10·1 answer
  • When the sale of traditional soft drinks declined, many manufacturers realized the demand for sugar-free and sports drinks went
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!