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morpeh [17]
3 years ago
9

One of the key motives for mergers is​ ________. A. reducing the marginal tax rate B. to sell the assets of the target company t

o increase the cash balance C. increasing additional recaptured depreciation D. taking advantage of the other​ firm's tax loss carryforward
Business
1 answer:
inn [45]3 years ago
6 0

Answer:

The correct answer is D

Explanation:

Merger is the defined as the corporate strategy which combines different companies or organization into a single or one company so that to enhance the operational as well as financial strengths of both the companies and carry out the business as one.

The motive or purpose is to takeover the business as the economic gains results through merging the resources of the two companies.

So, the primary or main motive for mergers is to take the advantage or benefit  of the other company's tax loss carryforward.

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In its most recent financial statements, Del-Castillo Inc. reported $55 million of net income and $840 million of retained earni
Mashcka [7]

Answer:

Difference in retained earnings

= $840,000,000- $825,000,000

= $15,000,000

Dividend paid = Net income - Difference in retained earnings

Dividend paid = $55,000,000 - $15,000,000

Dividend paid = $40,000,000

Explanation:

In this case, there is need to determine the difference in retained earnings, which equal retained earnings at the end minus retained earnings at the beginning.

Dividend paid is calculated as net income minus difference in retained earnings.

8 0
3 years ago
One year ago, you purchased 500 shares of stock for $22 a share. The stock pays $0.32 a share in dividends each year. Today, you
Vadim26 [7]

Answer:

Return on investment=12.81%

Explanation:

<em>Return on investment for a stock comprises of the capitals and dividend earned on the stock.</em>

<em>The capital gain is the difference between he cost of the shares when it was bought and the value when it is sold.</em>

Capital gain = (24.50 -22)× 500= 1250

Dividend earned for a year = 0.32× 500 =160

Total return = 1250  + 160 =1,410

Total return = $1,410

Cost of the shares= 11,000

Return on investment = total return/cost of shares× 100

                                     =1,410 /11,000 ×  100= 12.81

Return on investment=12.81%

3 0
3 years ago
Henry's savings account has an APR of 3.65%
Kisachek [45]

Answer:

and Leah is saving her account APR of

5 0
3 years ago
If a company has excess capacity, increases in production level will increase variable production costs but not fixed production
den301095 [7]

Answer; True

Explanation;

When a company has excess capacity, it means that potentially it could produce more than it is producing at the moment. As this potential already takes into account the fixed costs, this means that given the fixed costs it currently has, more goods could be produced on those same fixed costs and they wouldn't increase.

Increasing production level would therefore only increase variable costs which rise whenever production rises as they are directly related to the production of goods.

6 0
3 years ago
An economy's resources: are always fully employed. can always be over-utilized. can be over-utilized, but only temporarily. can
irakobra [83]

Answer:

The correct answer is could be over- utilized, but for temporarily

Explanation:

Economy resources are those resources or the factors which are used while producing the goods and the services. It could be divided or classified among  human resource like management and labor and the non- human resources like technology, land and capital goods.

So, the economy resources could be over- utilized, but for temporarily through adding the shifts as well as running the equipment for longer but the machines could break down and the labor tires, therefore the over utilization cannot be sustained.

7 0
3 years ago
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