Answer:
The lowest price the target's owners are willing to accept for the firm is 50
Explanation:
Solution
It is known that in the market there are two firms. while one is target, the other is equity firm.
The target has several projects at hand bu the firm's worth is uncertain. it lies anywhere between 0 and 100.
Now,
The equity believes that the target is not well managed and with a good management it's value can be increased by 50%
Now,
The owner of the target does not know the firm's worth. so, it may be profitable or the firm to accept the average outcome
Note: Kindly find an attached copy of the complete question for this example below.
Average outcome 0 + 100/2
= 100/2 = 50
Therefore, the lowest price the target's owners are willing to accept for the firm is 50
Answer:
Art Direction - first choice
The answer would be 50%.
I hope this helps!
Answer and Explanation:
amount borrowed = $10,000
interest rate =12%
interest accrued = $10,000*12%*1/12
= $100
date general journal debit credit
jan 31 interest expense 100
interest payable 100
Answer:
Monthly pay= 5344.67
Explanation:
Giving the following information:
To live comfortably, you decide you will need to save $ 1million by the time you are 65.
Today is your 29th birthday, and you decide to put the same amount into a savings account. If the interest rate is 8%.
How much must you set aside each year?
n= 36
i= 0.08
FV= 1,000,000
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
We need to isolate A (monthly pay):
<u>A= (FV*i)/[(1+i)^n-1]</u>
A= (1000000*0.08)/(1.08^36-1)
A= 80000/14.96817184
A= 5344.67
