Empirical evidence on acquisitions indicates shareholders of the selling company, and buying company. a. O b. no; substantial d. substantial; substantial C. substantial; no no; no excess returns on average to the excess returns on average to those of the
Q: who are the key partners for a medical robot company?
A: A medical robot company needs to work with key partners in order to ensure that its products are…
Q: 1.Suppose delta = -0.5 and the option is to sell 10 shares. If you buy the option the delta hedge is…
A: Delta of option is change in price of option with change in prices of stock in the market. it shows…
Q: Uncle Ben saved $800.000 during the 25 years that he worked for a major corporation. Now he has…
A: The question is related to Capital Budgeting.1. The Net Present value is calculated with the help of…
Q: 8) Gerry is considering buying a small business that makes t-shirts. He plans on running the…
A: The valuation of the business is the present value of cash flow from the business that are expected…
Q: : You dont have to call this banking as Islamic banking rather, you have to call it interest free…
A: Islamic banking is based on the Islamic principles and Shariah rules and regulation but this banking…
Q: Discuss possible strategies of the company to decrease breakeven point, Contribution margin, and…
A: Breakeven point: Formula for breakeven point (in units) = Fixed CostsContribution Margin…
Q: Assume that the current (indirect for the UK) spot exchange rate of one pound to the dollar is…
A: Arbitrage is the process where differences in the price of the same commodity in different markets…
Q: Bailey's has a preferred share issue outstanding with a current price of $26.57 per share and a par…
A: Solution: Given, Current price per share of preferred share = P0 =$26.57 Par value of a preferred…
Q: Which retirement income strategy is most likely to result in fluctuating withdrawals OA. Constant…
A: Retirement income strategy refers to the management of fund that is maintained for the time of…
Q: The treasurer of a small bank has borrowed funds for 3 months at an interest rate of 5.50% and has…
A: We have to find the break even 6 months forward rate, so that hedge has no incremental cost.
Q: o Coal Company has estimated the costs of debt and equity capital (with bankruptcy and agency costs)…
A: Weighted average cost of capital of the company is the weighted cost of debt and weighted cost of…
Q: The formula to calculate the discounted value of a single payment received in the future is which of…
A: Two questions appear on the screen. In the first question, we have to find the expression that…
Q: Your venture has signed a new consulting contract that will require you to invest in new analytical…
A: Modified Internal rate of return is a capital budgeting technique used to evaluate whether the…
Q: You are valuing a company at year end 2022 that has a target capital structure of 65% equity and 35%…
A: Particulars Values Year FCF Weight of debt 35% 2022 £ 10,000.00 Weight of equity 65% 2023…
Q: You buy a property valued at $4,000,000 and finance your purchase with a 70% LTV loan. The bank…
A: The value of the property is $4,000,000 The time period is 20 years The interest rate is 5%…
Q: Payment can be made in the form of funds, assets, or __________. Multiple Choice services…
A: There are multiple ways of making payment. We have to find the correct alternative.
Q: years, you will graduate and enter the workforce. Let us suppose that you and a friend both start…
A: There is need of planning for retirement and if done on the proper time than you will accumulate…
Q: Jersey Jewel Mining has a beta coefficient of 1.1. Currently the risk-free rate is 2 percent and the…
A:
Q: You have 29 minutes, 34 seconds left. This question relates to the SportHotel problem we covered in…
A: Information on Orginal problem: Cash inflows:If the franchise is awarded - $8mIf the franchise was…
Q: Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase.…
A: Bond price refers to the amount at which investors are willing to pay for an existing bond in the…
Q: company wanta to false $11.0 million by issuing 20-year zero coupon bonds. If the yield to maturity…
A: Zero coupon bonds are issued at a high discount and on maturity these bonds pay the face value.…
Q: allolah has a credit card through BestBank. Her credit card has a $5,000.00 limit and has a 15%…
A: In Average Daily Balance Method, the balance for each day of the billing period is calculated after…
Q: I am buying a used 2020 Ford EcoSport because I need something to drive. The the EcoSport cost…
A: Monthly payment on loan when it is amortized is an annuit concept of time value of money. Time…
Q: A local business received a $45,000 loan at 4.0 compounded semi-annually. The business sett oan with…
A: Loans are paid by the equal monthly payments and these payments carry the payment for interest and…
Q: Case Study: Time value of money Mr. Road has reached his seventieth birthday and is ready to retire.…
A: Investments are very important for an individual's financial journey through which retirement…
Q: You decided to buy a new car and the dealer's best price is $49,900. The dealer agrees to provide…
A: Loan amortization table shows the ditribution of periodic payments towards principal and interest…
Q: Hancock Toy Co. had Net Income of $500,000 and paid cash dividends of $200,000 during this year.…
A: Ending equity is calculated using following equation Ending equity for the year = Beginning of the…
Q: 3 Calculate WACC
A: Weighted average cost of capital (WACC) is used as a hurdle rate for evaluating capital investment…
Q: Weighted Average Cost of Capital and Net Present Value Analysis Tate Company is considering a…
A: The mixture of multiple funding sources constitutes an entity's capital structure. The proportionate…
Q: Two companies are in the retail sales business, but their performance results are different, which…
A: There are two types of companies, one which is well organized and the other which is offering…
Q: Which of the cases did not involve intellectual property issues? O a. All of these involved…
A: Several cases have been given. We have to find the one where intellectual property issues were not…
Q: You are considering the following two projects and can take only one. Your cost of capital is 10.9%.…
A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Cash Flows from Operating Activities-Indirect Method Staley Inc. reported the following data: Net…
A: The question is related to Cash Flow Statement. Cash Flow Statement is summary of cash receipts and…
Q: A $700,000 loan was received on Nov. 30, 2022, with annual interest at 9.5%, C/M, requires monthly,…
A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…
Q: Projected Spontaneous Liabilities Smiley Corporation's current sales and partial balance sheet are…
A: Spontaneous liabilities are short term liabilities that generally arise as result of operating of…
Q: 1.Complete the table below. TOTAL SALES P125, 000 b. P 185, 000 d. P1, 450,000 COMMISSION RATE 4.50%…
A: a. Calculate the commission as follows: Commission = Total sales * Commission rate Commission =…
Q: A mutual fund that aggressively seeks capital growth: OA. will have an MER that is higher than a…
A: GIven : A mutual fund that aggressively seeks capital growth. Required: Status if Management Expense…
Q: You have taken a loan of $77,000.00 for 29 years at 5.3% compounded quarterly. Fill in the table…
A: Payment amount refers to the value that is being at each month either beginning or ending including…
Q: Kennedy, Inc. reported the following data: Net income Depreciation expense Loss on disposal of…
A: The question is related to Cash Flow Statement. The Cash Flow Statement is summary of cash receipts…
Q: Alternative A B C D E Annual Equivalent Cost Php 49,990,000 53,000,000 68,250,000 61,000,000…
A: The B-C ratio is the benefits of the respective project divided by the costs of the individual…
Q: Answer the following as indicated. (Format: problem, then, solution) 1. Brian borrowed from his…
A: Given: Borrowed amount = 9,000 Repaid amount = 9,600 Periods = 15 months
Q: e dividend-growth model may be used to value a stock: und your answers to the nearest cent. a. What…
A:
Q: You buy a property valued at $4,000,000 and finance your purchase with a 70% LTV loan. The bank…
A: The value of the property is $4,000,000 The time period is 20 years The interest rate is 5%…
Q: An investment pays 2000 at the end of year 1 and 2000 at the end of year 2. It was purchased to…
A: Convexity is measure in the change in duration of bond with yield of bond and duration of bond is…
Q: Bond Bond A Coupon Rate 5% Par/Face/Princ 5% $1000 Years to 2 B $1000 3 a. If the Yield to maturity…
A: Price of bond is the present value of bond and present value of the par value of bond taken on the…
Q: Where are Financial costs and Dividends considered in a scenario analysis? Just a simple answer
A: Introduction : A scenario analysis is a tool used to assess the potential outcomes of a given…
Q: The management of ABC company are considering buying a new machine which would produce parts for a…
A: Machine A Initial cost $65,000.00 Salvage Value $ 5,000.00 Cash sales $24,000.00 Cash…
Q: Patty Purchaser purchases Blackacre, 175 acres of unimproved land for $4 million. Three years later,…
A: We have to find the tax consequence of the sale of land.
Q: Suppose that all capital gains are taxed at a 24% rate, and that the dividend tax rate is 48%.…
A: Capital gain tax rate – 24% Dividend tax rate – 48% Current share price - $ 31 Special dividend $ 4
Q: The payroll register of Seaside Architecture Company indicates $850 of social security and $215 of…
A: Payroll tax expense refers to a liability that is paid to the Federal or state government by the…
Need typed answer .Please give answer within 30 minutes
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Under PFRS 3, when is a gain recognized in consolidating financial information? Group of answer choices a.When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company. b.In an acquisition when the value of all assets and liabilities cannot be determined. c.When any bargain purchased is created d.In a combination created in the middle of the fiscal yearWhich of the following is NOT included in the cost of an acquired company? (applying section 19 of IFRS for SMEs) a. Contingent consideration determinable at the consummation date of the combination b. Finder’s fee for arranging the combination c. Cost of registering and issuing equity securities d. None of the aboveStatement I: Gain on bargain purchase is included in the consolidated balance of shareholders’ equity at the date of acquisition.Statement II: For business combination for SMEs, all business combination expenses, direct, indirect, and share-issue costs are deducted in the consolidated balance of shareholders’ equity at the date of acquisition. a. False, True b. False, False c. True, True d.True, False
- Statement I: Gain on bargain purchase is included in the consolidated balance of shareholders’ equity at the date of acquisition.Statement II: All business combination expenses, direct, indirect, and share-issue costs are deducted in the consolidated balance of shareholders’ equity at the date of acquisition. True, False False, False True, True False, TrueIn a business combination achieved in stages, if the acquisition date fair value of the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities of the acquiree is higher than the aggregate of the (1) acquisition date fair value of the consideration transferred by the acquirer; (2) amount of noncontrolling interest measured at fair value or proportionate share; and (3) acquisition date fair value of acquirer's previously held equity interest in the acquire, the difference shall be accounted for by the acquirer in its consolidated statement of financial position as:A. GoodwillB. Deduction directly to retained earningsC. Expense as incurredD. Gain on bargain purchaseIn the equity method of acquisition income is recognized only when the subsidiary declares dividends Select one: True False
- How shall an acquirer in a business combination account for the changes in fair value contingent consideration classified as equity instrument if the changes result from events after the acquisition date? a. The changes in fair value of contingent consideration classified as equity shall be recognized as gain or loss in profit or loss because they are not measurement period adjustments. b. Contingent consideration classified as equity shall not be re-measured and its subsequent settlement shall be accounted for within equity. c. The changes in fair value of contingent consideration classified as equity shell be retrospectively restated to beginning retained earnings because they are prior period error. d. The change in fair value of contingent consideration classified as equity shall be retroactively adjusted to goodwill/gain on bargain purchase because they are measurement period adjustments.For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity? C . Th ey are a component of accumulated other comprehensive income.Which of the following statements about post-acquisition earnings is incorrect? А. They are the earnings produced subsequent to the acquisition date by members of the group. В. They form part of earnings of the economic entity. С. They are eliminated against the parent's earnings, in a similar fashion to pre- acquisition earnings. D. They form part of earnings of the economic entity and they are eliminated against the parent's earnings, in a similar fashion to pre-acquisition earnings.
- Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination created in the middle of the fiscal year b. In an acquisition when the value of all assets and liabilities cannot be determined. c. When any bargain purchased is created d. When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company.What is the correct method for treating a vesting differential linked to the acquisition of shares? privileged rights of the subsidiary by the parent company? Select an answer: a. It must be allocated to identifiable net assets or goodwill. b. It must be distributed in proportion to the identifiable assets and liabilities of the subsidiary. c. It must be charged to consolidated retained earnings or credited to contributed surplus. d. It must be taken care of in the current year.In the cost method of acquisition income is recognized only when the subsidiary declares dividends Select one: True False