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nignag [31]
3 years ago
10

Pearl, Inc., has offered $578 million cash for all of the common stock in Jam Corporation. Based on recent market information, J

am is worth $533 million as an independent operation. If the merger makes economic sense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger?
Business
1 answer:
Lelu [443]3 years ago
3 0

Answer:

$45,000,000

Explanation:

Calculation for the minimum estimated value of the synergistic benefits from the merger

Using this formula

Minimum estimated value of the synergistic benefits =Cash-Independent operation

Let plug in the formula

Minimum estimated value of the synergistic benefits = $578,000,000 – 533,000,000

Minimum estimated value of the synergistic benefits =$45,000,000

Therefore the minimum estimated value of the synergistic benefits from the merger is $45,000,000

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Raphael lives in Detroit and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of t
Misha Larkins [42]

Answer:

Implicit cost

The salary Manuel could earn if he worked as a financial advisor

b. The rental income Manuel could receive if he chose to rent out his showroom

explicit cost

c. The wholesale cost for the pianos that Manuel pays the manufacturer

d. The wages and utility bills that Manuel pays

Explanation:

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials.  

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Only explicit cost is considered when calculating accounting profit while both explicit and implicit costs are considered in calculating economic profit.

Accounting profit= total revenue - explicit cost

Economic profit = accounting profit - implicit cost

If Manuel did not sell pianos, he would be working as a financial advisor, this is his next best option. Thus the salary he would have earned as a financial advisor is his explicit cost

If he did not use the showroom, he could have rented it out. Renting it out is his next best option. Thus the income from renting the showroom is his explicit cost

The wholesale cost of the pianos, wages and utility bills are monies actually expended in the course of running the business. Thus they are explicit costs

8 0
3 years ago
The first step in the Analytical Hierarchy Process:
V125BC [204]
The answer will be D to this question
8 0
3 years ago
If the employees of San Simeon Company successfully borrowed a large sum of money and purchased the firm from its current owners
schepotkina [342]

We would call this event a <u>leveraged buyout (LBO)</u>.

<u>Explanation:</u>

A leveraged buyout is the attempt of buying a company primarily through borrowing. This purchasing involves combination of both equity and debt. The funds borrowed are used to buy out the stockholders in the company. The employees, managers, or investors now become the owners of the firm. The firm is taken private, when the managers buy all of the stock of the firm and take it off the open market.

In the above scenario, the employees of San Simeon company purchases the firm from their current owners by borrowing large sum of money.

7 0
3 years ago
Maria's initial project budget was increased from 16,000 to 18,000 . What was the variance from the initial budget
algol [13]
It increased by 2000
4 0
3 years ago
The Retained Earnings balance was $24,100 on January 1. Net income for the year was $19,900. If Retained Earnings had a credit b
padilas [110]

Answer: $17800

Explanation:

The opening balance of Retained earnings = $24,100

Net Income for the year = $19,900

Closing balance of Retained earnings = $ 26,200

The, the amount of dividends declared during the year = (opening balance) +(Net Income) -( Closing balance)

= $ (24100+19900-26200)

= $17800

Hence, the amount of dividends declared during the year  is $17800.

4 0
3 years ago
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