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GREYUIT [131]
3 years ago
15

The basic premise of unrelated diversification is that:

Business
1 answer:
Musya8 [376]3 years ago
7 0

Answer: d. any company that can be acquired on good financial terms and that has satisfactory growth and earnings potential represents a good acquisition and a good business opportunity.

Explanation:

Unrelated diversification refers to the addition of a subsidiary to a company so as to penetrate new markets and make more income.

When a company is deciding on a company to acquire, it will choose one that can be acquired relatively cheaply or at least at a fair value give its assets as well as one that has good growth prospects and potential to earn returns that will increase the returns of the purchasing company.

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On January 1, 2021, Legion Company sold $270,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December
BabaBlast [244]

Answer:

Interest expense = $8453

Explanation:

We can calculate Bond interest expense by multiplying Carrying value of the bond with the effective interest rate and the period of time,

DATA

Carrying value of bond = $169,056

Effective interest rate = 10%

Period of time = 6 months

Interest expense =?

Calculation

Interest expense = Carrying value x Effective interest rate x Time period

Interest expense = $169,056 x 10% x \frac{6months}{12months}

Interest expense = $8453

3 0
3 years ago
Electronic Arts is a video game company that competes with Activision Blizzard. A condensed balance sheet for Electronic Arts an
timofeeve [1]

Answer:

a. <em>Computation of percentages for Vertical Analysis</em>

Other current Assets  -- (Other current assets/Total Assets) * 100 -- ($291/$5070)*100 -- 6%

Intangible -- (Intangibles/Total assets) * 100 --($1,974/$5,070)*100--39%

Property and Equipment,Net -- (Property and equipment,Net/Total assets)*100-- ($548/$5070)100 -- 11%

Accrued Liabilities -- (Accrued liabilities / Total liability and stockholders Equity)*100 -- ($658/$5070)*100-- 13%

Total Liabilities -- (Total liability/Total liabilities and stock holders Equity) * 100 -- ($2803/$5070) * 100 -- 55%

b. <em>Percentage of intangible and Property and Equipment</em>

Intangibles -- (Intangibles / Total assets) * 100 -- ($1,976/$5070 * 100) -- 39%

Property and Equipment -- (Property and Equipment, Net/Total Assets) * 100 -- ($548/$5070 * 100) -- 11%

7 0
3 years ago
Multinational market regions include countries that seek mutual economic benefit from____________. A. reducing cooperative agree
Mademuasel [1]

Answer: Option C

                                     

Explanation: In simple words, multinational market refers to the economic system in which different countries of the world trade with each other by decreasing the barriers and taxes so that booth countries could be benefited from the ongoing business.

Multinational market structures have resulted in drastic expansion ion business activities all around the world as the business firms can not target new markets which were earlier out of reach

Hence from the above we can conclude that the correct option is C.

8 0
3 years ago
Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,130,00
viva [34]

Answer:

$201,300

Explanation:

Carter Company

Computation of the residual income for the division

First step

Using this formula

Sales -Cost of goods sold- expenses

Operating

Let plug in the formula

$4,555,000 - 2,580,000 - 1,402,000

= $573,000

Second step

Now let find the Residual Income

Residual income =$573,000 - ($4,130,000 * 9%)

Residual income = $573,000-$371,700

Residual income =$201,300

Therefore the residual income for the division will be $201,300

6 0
3 years ago
A firm with total liabilities and owners’ equity of $100,000 and net sales of $50,000 would have a total asset turnover of
Virty [35]

Answer:

 = 50000 / 100000 * 100

 = 0.50

Explanation:

5 0
4 years ago
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