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ryzh [129]
3 years ago
11

Jennifer’s Boutique has 2,100 shares outstanding at a market price per share of $26. Sally’s has 3,000 shares outstanding at a m

arket price of $41 a share. Neither firm has any debt. Sally’s is acquiring Jennifer’s for $58,000 in cash. The incremental value of the acquisition is $2,500. What is the value of Jennifer’s Boutique to Sally’s?a. $26,000b. $27,600c. $57,100d. $58,200e. $60,500
Business
1 answer:
goldenfox [79]3 years ago
4 0

Answer:

c. $57,100

Explanation:

The computation of the value of Jennifer’s Boutique to Sally is shown below:

= (Number of shares outstanding ×  market price per share) + (incremental value of the acquisition)

= 2,100 shares ×$26 + $2,500

= $54,600 + $2,500

= $57,100

We simply find out the market value and then added it to the incremental value of the acquisition

All other information which is given is not relevant. Hence, ignored it

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Which of the following is influenced by personal economic choices? Check all that apply.
alexdok [17]
These are factors that influences the personal economic choices that a person will decide:
-the resources you have available
-the money you decide to spend on leisure products
-the amount of money you put into your savings account
-and the manner in which you balance your time between work and leisure
In the answers above, the only choice that I did not check is number 1 because it is not a personal choice that is applied to everyone. resources and money are saved and used for personal choices of a person for leisure and needs.
3 0
3 years ago
8.Kline and Salomon form the KS Partnership as 50/50 partners. Kline contributes equipment that has a fair market value of $60,0
mojhsa [17]

Answer: $40,000

Explanation:

Kline brings in equipment that is worth $60,000 but has a basis of $45,000.

The equipment however is subject to a loan of $10,000.

This loan will have to be deducted from the basis. The partnership however is assuming the loan and Kline is only 50% liable in the partnership so Kline's basis will only be affected by half of the loan.

Basis = 45,000 - 5,000

= $40,000

5 0
3 years ago
Which of the following relies the most on the health of the economy?
guajiro [1.7K]

Answer: Trade Industries

Explanation:

Trade industries survive as long as people and businesses can afford to trade goods and services. If entities are unable to afford consumption for a reason such as a decline in income, the trade industries will suffer.

When the economy is not healthy, income levels of people will reduce and so trade industries will suffer as opposed to a healthy economy where entities can afford goods and services which will ensure the survival of trade industries.

8 0
3 years ago
Floyd Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5
stiks02 [169]

Answer:

5.62%

13.75%

Explanation:

According to the DDM method,

the value of a stock = [dividend x ( 1 + growth rate)] / [cost of equity - growth rate]

67 = 0.4(1.05) / r - 0.05

multiply both sides of the equation by r -0.05

67(r - 0.05) = 0.42

divide both sides of the equation by 67

r - 0.05 = 0.006269

r = 0.0563

= 5.63%

b. the cost of equity using the capm method =

risk free rate of return + beta x ( expected return - risk free return)

5% + 1.25 x (12 - 5) = 13.75%

3 0
2 years ago
The weather station model performs the invaluable function of ____________.
Greeley [361]

Answer:

Option B                                    

Explanation:

In simple words, Models of weather stations are visual representations displaying the weather taking place at a specified monitoring station. The stations design was developed by meteorologists that incorporate a variety of climate components into some kind of small area on satellite images.This model has been of high use to prepare for the natural calamtites in advance but it does not influence the project in any way.

4 0
3 years ago
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