Answer:
$40.79 per share and $52.90 per share
Explanation:
Cost of Debt (Kd) = Wd * Rd (1 - T)
Cost of Debt for Vandell Corporation is $7.30 * (1 - 0.40) = 4.38%
Cost of Equity (Ke) = Rf +
* Rp
Cost of Equity for Vandell Corporation is 6 + 1.10 * 7 = 13.70%
Weighted Average Cost of Capital (WACC) = Wd * Kd + We * Ke
Cash Flow of Firm = $2.5m + $3.2m + $3.5m + $3.57m = $12.77
Weight of Equity = $8.94
WACC = 30% * 4.38% + 70% * 13.70% = 10.9%
CashFlows after discounting synergy will be = $40.79
The cross-price elasticity of demand is -1.82
Calculate the cross-price elasticity of demand:
The formula to calculate the cross-price elasticity of demand is:
(92 -91)/[(02 + 91)/2]
Cross price elasticity
(P2- A)/[(P +P)/ 2]
(15-10)/ [(15+10)/2]
(4-5)/ (4+5)/2]
5/12.5
-1/4.5
0.4
-0.22
=-1.82
Therefore, the cross-price elasticity of demand is -1.82. Since the demand is negative
The goods are said to be Complements.
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Suppose that when the price of peanut butter falls from $5 to $4 per jar, the quantity of jelly purchased rises from 10 million jars to 15 million jars. Instructions: Round your answer to two decimal places and include a negative sign if appropriate. The cross-price elasticity of demand between peanut butter and jelly using the midpoint method is The goods are?
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Mediation<span> is the use of a third party to encourage labor and management to continue negotiating in an effort to settle a labor dispute or achieve a mutually acceptable labor-management agreement.
Mediation is common in any disagreement when needing to come to a conclusion for an on-going issue. It's beneficial to have a mediator who is a third party to advocate and </span>clarify points each side is making. This helps facilitate without preference for both labor and management to agree/come to terms with an idea, issue or advancement they are facing.