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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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Current date in the top right-hand corner in most cases, you’ll use today’s date.On the line that says pay to the order of  write the name of the person or organization you’re paying. Write the amount of your payment in the small box on the right hand side. Write out the amount using words to avoid fraud and confusion. Sign the check legibly on the line in the bottom-right corner. If you like include a note

7 0
3 years ago
Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of
SpyIntel [72]

Answer:

Bond Price​= $424,588.28

Explanation:

Giving the following information:

Face value= $485,000

Number of periods= 10*2= 20

Interest rate= 0.08/2= 0.04

YTM= 0.1/2= 0.05

T<u>o calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 19,400*{[1 - (1.05^-20)] / 0.05} + [485,000/1.05^20)

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5 0
3 years ago
Computing Straight-line and Double-Declining-Balance Depreciation On January 2, Reed Company purchases a laser cutting machine f
Rudiy27

Answer:

1a. Straight line method            year1        year2         year3    year4     year5

depreciation expense            $14,000     14000       14000   14000     14000

b. Double declining balance   28000       28000     14000      0            0

2. FINANCIAL STATEMENT TEMPLATE FOR YEAR 1

Sales                                                    straight line              double declining

less cost of sales

          opening stock

          + purchases

           - closing stock

          + depreciation                        14000                            28000

       

Explanation:

straight line depreciation = (cost -salvage value) / useful life

                                          = ( $75,000 - $5000) / 5 years

double declining balance method = straight line * 2

                                                         = (100%/5yrs) *2

                                                          =40%

  75000-5000=70000*40% = $28000

the cost of sales in straight line increases by 14000 and by 28000 in double reducing which results in high profits in straight line than in double declining

The depreciation of the machine in year 3 is supposed to be 28000 but the carrying value of the machine is 14000 therefore the full carrying amount is depreciation and in year 4 and 5 there is no depreciable amount hence the nil depreciation.

5 0
3 years ago
What type of stock does a large company issue? A large company issues (blue chips, B-grade, speculative, or diversified ) stock.
vlabodo [156]
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geniusboy [140]
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The unlikely basis for an organization's culture is D. THE LOCATION OF THE ORGANIZATION'S MANUFACTURING AND DISTRIBUTION FACILITIES.

An organization's culture is based on the vision and mission of the company as well as its rewards to its employees. The culture of an organization is manifested in its treatment to its employees and services rendered to its customers. 

5 0
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