Due to heavy lobbying by the Cake Makers of America, the government issues a new regulation that requires people who sell cakes
1 answer:
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Answer:
The lowest price the target's owners are willing to accept for the firm is 50
Explanation:
Solution
It is known that in the market there are two firms. while one is target, the other is equity firm.
The target has several projects at hand bu the firm's worth is uncertain. it lies anywhere between 0 and 100.
Now,
The equity believes that the target is not well managed and with a good management it's value can be increased by 50%
Now,
The owner of the target does not know the firm's worth. so, it may be profitable or the firm to accept the average outcome
Note: Kindly find an attached copy of the complete question for this example below.
Average outcome 0 + 100/2
= 100/2 = 50
Therefore, the lowest price the target's owners are willing to accept for the firm is 50
Answer:
False
Bill will have less than Beth
Explanation:
let us compare the amounts accumulated by the two individuals at age 65 to see which is more.
Money accumulated by Bill at age 65:
Since bill saves $2500 a year for 30 years, amount saved at the end of 30 years = 2500 X 30 = $75000.
Money accumulated by Beth at age 65:
Beth saves $2,500 a year from age 25 until age 34: Amount saved = 2500 X 9 = $22500
Invests the money in an account earning ten percent annually for 31 years.
Assuming it was at a simple interest rate,
The interest at the end of the 31st year will be:
Therefore total amount at age 65 = $22, 500 + 69750 = $92,250.
∴ This shows that Bill will have less money than Beth. Primarily due to the fact that he started investing at a lot later time than Beth.