Answer:
This scenario best illustrates an acquisition.
Explanation:
Acquisition refers to the situation where a company gains control of the other company by purchasing all or most of its shares. Acquisitions are common in small and medium-sized firms and may happen with or without the consent of the target company.
In the given example, Orange roof hotels are the target company that is being purchased by the Palace Hotel group which will now control the assets of the Orange roof hotels and take business decisions.
Answer: a) $6
b) Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $3 per bottle.
c) False
Explanation:
a) The amount of tax paid on a bottle can be calculated as,
Amount of tax = Price paid by consumers - Price received by producers
Amount of tax = 7 - 1
Amount of tax = $6
b) The tax burden on the consumer is given by,
Tax burden of consumers = Price paid by consumers - Pre-tax Price
Tax burden of consumers = 7 - 4
Tax burden of consumers = $3
Tax burden of producers = Pre-tax price - Price received by producers
Tax burden of producers
Tax burden of producers = 4 - 1
Tax burden of producers = $3
c) False
Quantity sold does not change depending on who is taxed between the producer and the supplier.
Answer:
$78,000
Explanation:
Total cost of producing 2,000 tires:
= [(Direct materials + Direct manufacturing labor + Variable manufacturing overhead) × 2,000 units] + Fixed cost
= [($20 + $3 + $6) × 2,000 units] + ($10 × 2,000 units)
= $58,000 + $20,000
= $78,000
Therefore, the total cost of producing 2,000 tires is $78,000.
Answer:
Present value (PV) = $100,000
Number of years (n) = 12 years
Future value (FV) = $240,000
FV = PV(1 + r)n
$240,000 = $100,000(1 + r)12
<u>$240,000</u> = (1 + r)12
$100,000
2.4 = (1 + r)12
12√2.4 = 1 + r
1.0757 - 1 = r
0.0757 = r
r = 0.0757 = 7.57% = 8%
Explanation:
In this case, we need to apply the formula for future value of a lump sum (single investment). The present value, future value and number of years have been provided in the question with the exception of interest rate. Thus, interest rate becomes the subject of the formula,which implies that we will solve for interest rate.
Since the problem assumes annual compounding, then the
relationship of forward rate and spot rates is given in the equation:
f1,2 = ((s2^2 / s1) - 1)
Therefore,
f1,2 = ((1.069^2 / 1.063) - 1)
f1,2 = 0.075 = 7.5%
Forward rate is 7.5%.