Answer:
The answer is "$4.311".
Explanation:
Calculating the EPS after the merger:
![\text{Stultz Corp Post Merger Earnings} = 220,000 + 1,000,000 \\\\](https://tex.z-dn.net/?f=%5Ctext%7BStultz%20Corp%20Post%20Merger%20Earnings%7D%20%3D%20220%2C000%20%2B%201%2C000%2C000%20%5C%5C%5C%5C)
![= \$1,220,000](https://tex.z-dn.net/?f=%3D%20%5C%241%2C220%2C000)
![\to \text{Number of Shares Post Merger:} \\\\=\frac{99,000}{3} + 250,000\\\\ = 283,000\\\\\text{EPS Post Merger} =\frac{\text{Stultz Corp Post Merger Earnings}}{\text{Number of Shares Post Merger}} \\\\](https://tex.z-dn.net/?f=%5Cto%20%5Ctext%7BNumber%20of%20Shares%20Post%20Merger%3A%7D%20%5C%5C%5C%5C%3D%5Cfrac%7B99%2C000%7D%7B3%7D%20%2B%20250%2C000%5C%5C%5C%5C%20%3D%20283%2C000%5C%5C%5C%5C%5Ctext%7BEPS%20Post%20Merger%7D%20%3D%5Cfrac%7B%5Ctext%7BStultz%20Corp%20Post%20Merger%20Earnings%7D%7D%7B%5Ctext%7BNumber%20of%20Shares%20Post%20Merger%7D%7D%20%5C%5C%5C%5C)
![= \frac{1,220,000}{283,000} \\\\= \$4.311](https://tex.z-dn.net/?f=%3D%20%5Cfrac%7B1%2C220%2C000%7D%7B283%2C000%7D%20%5C%5C%5C%5C%3D%20%5C%244.311)
Answer:
a gain for 6,000 dollar will be recognized
the new bonds basis will be of 22,000
Explanation:
Total proceeds from the sale:
22,000 in bonds plus 3,000 cash for a total of 25,000
The basis of the bond gifted was 19,000
Therefore, there is a realzied gain on sale for the difference which is 6,000 dollars.
The new bonds are worth 22,000 therefore their basis will be of 2,,000 dollars
Answer: $1,750
Explanation:
Incurring a health insurance cost of $5,000 or increasing salaries by $5,000 will have the same effect on the taxes because they will both be removed from the income before the taxes are calculated.
The reduction in tax in either case is:
= Expense * Tax rate
= 5,000 * 35%
= $1,750
Answer: Option C
Explanation: Manufactured dwelling implies a trailer, a camper van or perhaps an engineered residence. It relates to a formation, portable in one or maybe more parts, that is built on a continuous frame and, when linked to the necessary services, is intended to be used even without a perpetual structure.
In simple words, Manufactured accommodation (usually referred to as U.S. mobile homes) is a form of precast concrete accommodation that is primarily constructed in manufacturing plants and then transferred to use locations. Thus, from the above we can conclude that the correct option is C.
Answer:
d. where price is equal to average fixed cost.
Explanation:
Firms involved in a perfectly competitive market face the same cost, <em>they will theoretically make zero profit on the long run.</em> This happen at the point where price is equal to average fixed cost.