Answer:
<u>Dingo should reject this project </u>
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Explanation:
sales - operating expenses = controllable margin
controllable margin/operating asset = return on assets
100,000 sales - 86,000 expenses = 14,000
14,000/200,000 = 0.07 = 7%
This project yield 7% which is lower than Ding required rate of return of 9%
Dingo should reject this project of finance it through a lower cost of capital.
Answer:
The correct answer is letter "C": "If you do not report any differences with 15 days, it will be assumed that this statement is correct".
Explanation:
Accounts Receivable, or AR, is an accounting term used to refer to the money that is owed to a company by its customers. The customers, who may be individuals or corporations, are the debtors since they owe money for the goods or services provided by the company. When the product is sold in credit the company sets a number of days so that the customer can pay the bill amount. The term usually is 30, 60 or 90 days.
In that sense, and auditor may find 15 days suitable for a debtor for report changes in a statement, otherwise, it is considered as correct.
A.
Low credit scores usually indicate irresponsible spending behaviors.
Answer: a - the management and board of directors of the targeted firm disapprove of the proposed merger
Explanation:
A hostile takeover is a situation where the board of directors and senior managers are against the proposed merger.
There are several pre-offer takeover defense mechanisms. One of them is the golden parachute.
The golden parachute is a compensation agreement between a firm and its senior managers. The firm promises a very lucrative amount of money if the senior managers leave the firm if there's a change of control.
There are also post offer takeover defense. They include:
A. The crown jewel - in a crown jewel the firm sells off a subsidiary or an asset to a third party in an effort to mitigate the hostile take over.
B. Greenmail - the target buys its shares back from the acquiring company at a price higher than the market price. This is done with an agreement that the acquirer leaves the target company. It is a form of payoff by the target company.
Answer:
$75
Explanation:
The formula to compute the price -earning ratio is shown below:
Price earning ratio = Market price ÷ Earning per share
where,
Market price is $60
And the earning per share is
= ($1,500,000 ÷ 300,000 shares)
So, price earning ratio is 12
Now the company stock price is
$12 = Stock price ÷ (2,500,000 ÷ 400,000)
So, Stock price is $75
