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nignag [31]
2 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]2 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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Answer:

These two are cash equivalents:

Money market funds

Three-month Treasury bills

Because they represent short-term investments that a company makes with the goal of getting rid of any excess cash that would otherwise be left unused while it is losing value because of inflation.

In other words, the main goal of investments in money market funds and three-month treasury bills, is to prevent cash from losing value due to inflation, and because of that, those investments are considered cash equivalents.

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3 years ago
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A project requires an initial investment of $60,000 and has a project profitability index of 0.329. The present value of the fut
OleMash [197]

Answer:

The present value of the future cash inflows from this investment is $19,740

Explanation:

Profitability Index is a useful tool for ranking project because we can know the amount/ value created by per unit of investment.

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8 0
3 years ago
Nico bought 100 shares of cisco systems stock for $30.00 per share on january 1, 2013. he received a dividend of $2.00 per share
Kamila [148]
Jan. 1, 2013:
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End of 2013:
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End of 2014:
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End of 2015:
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Realized returns = Total returns - Initial inestment
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6 0
3 years ago
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insens350 [35]
The most likely result of this price control would be that the <span>demand for bread will fall, which could result in an excess supply. his excess supply in the market would ultimately force the hand of the manufacturers to stop the production of bread. I hope that this is the answer that has come to your help.</span>
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3 years ago
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zepelin [54]

Answer:

The description according to another circumstance is summarized throughout the subsection below.

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