Answer:
It can purchase at most, $18.13 per share.
Or 72.52 millions for the total 4,000,000 shares
Explanation:
We are given with the present value of the merger at Craftworks discount rate. The shares can be purchase at most at the same level of the present value of the increase in the free cash flow.
That way, the net present value will be zero and the merger will yield the 16% required.
72,520,000 Millions
4,000,000 shares outstanding
price per share 18.13
The crafworks shares can be purchase at most for 18.13 above this, it would yield the 16% required
Currently the share are at 16.25 so it could be possible to do the take-over
Answer:
The correct answer is 8.679%.
Explanation:
According to the scenario, the given data are as follows:
Face value (F) = $1,000
Bond value (B)= $955
Time (t) = 18 years
Yield (r) = 9.2%
First we calculate the coupon payment:
Let coupon payment = C
then,
B = C × 
By putting the value, we get
$955 = C× 
$955 = C × 8.64 + 205.11
C = 86.79
So, Coupon Rate = Coupon Payment ÷ Face value
= 86.79 ÷ 1000
= 0.08679
= 8.679%
Answer:
It would be wiser for the couple to stay in the old apartment and save $1400
Explanation:
If they stay until the end of the lease, total money that will be paid out is $1000 x 6 = $6000,
If they leave, they'll have to forgo $1000.
If they move to their new apartment, they'll pay $900 x 6 = $5400
total expenditure if they move to the new place at the end of the six months period will be, the $1000 that will not be refunded back to them on the old apartment, plus this new $5600 for six month's rent in this new apartment, and that will be a total of $6400.
It would be wiser for the couple to stay in the old apartment and save $1400
A PWC is a Personal Water Craft or a water scooter. When using a PWC, what will most likely create a blind spot that will blocks other boats from seeing you is passing too closely behind other vessels. One has to keep a respectable distance from other vessels. Headlight also can also create a blind spot and prevent other users from seeing you.
Answer:
A.
Explanation:
Allocative efficiency is when the markets are working in the most economically efficient manner and there are no externalities (no over production or under production of economic goods and services).
Markets are allocative efficiency when the price equals the marginal cost.
Allocative efficiency is at an output which maximizes total consumer welfare.
is reached when no one can be made better off without making someone else worse off.
Occurs when the value that consumers place on a good or service (reflected in the price they are willing and able to paid) equals the cost of the factors resources used up in production.
