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tamaranim1 [39]
2 years ago
15

Cassandra's Boutique has 2,100 shares outstanding at a market price per share of $26. Sally's has 3,000 shares outstanding at a

market price of $41 a share. Neither firm has any debt. Sally's is acquiring Cassandra's for $58,000 in cash. The incremental value of the acquisition is $2,000. What is the value of Cassandra's Boutique to Sally's?
Business
1 answer:
stiv31 [10]2 years ago
7 0

Answer:

$56,600

Explanation:

Given that,

Cassandra's Boutique:

2,100 shares outstanding at a market price per share of $26.

Sally's:

3,000 shares outstanding at a market price of $41 a share.

Acquiring Cassandra's boutique for cash = $58,000

Incremental value of the acquisition = $2,000

We can get the value of Cassandra's Boutique to Sally's by adding the incremental value of the acquisition to the market value of the shares of Cassandra's Boutique.

Firstly, we are calculating the market value of Cassandra's Boutique:

= Outstanding shares × Market price per share

= 2,100 × $26

= $54,600

Therefore, the value of Cassandra's Boutique to Sally's is as follows:

= market value of Cassandra's Boutique + Incremental value of the acquisition

= $54,600 + $2,000

= $56,600

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Art [367]

Answer:

strength

Explanation:

When you are performing a SWOT analysis, you must analyze both internal and external factors. Internal factors include strengths and weaknesses, while external factors include opportunities and threats:

  • strengths: analyses what does your company do well and distinguish it from the competition.
  • weaknesses: analyses what are your company's weak spots and what does your competition do better than you.
  • opportunities: new situations that can favor your company.  
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2 years ago
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,
serg [7]

I THINK ITS MIDDLE FINGERS AT THESE AHOLE MODERATORS

6 0
2 years ago
Consider a remote town in which two restaurants, All-You-Can-Eat Cafe? and GoodGrub Diner, operate in a duopoly. Both restaurant
stich3 [128]

Answer:

Both restaurant will clean up

Explanation:                                                        

In the table below the first number in the parentheses belongs to All-You-Can-Eat Café? and the second number belongs to GoodGrub Diner . And the titles (Clean Up and Not Clean) represents their options separately.

                                                                            GoodGrub Diner

                                                     Clean Up            Not Clean

All-You-Can-Eat Café? Clean Up (11 000, 11 000) (18 000, 6 000)

                                Not Clean (6 000, 18 000) (14 000, 14 000)

If All-You-Can-Eat Café? cleans up, GoodGrub Diner will earn 11 000 dollars by cleaning up verses 6 000 dollars by not cleaning. And if All-You-Can-Eat Café? doesn’t clean, GoodGrub Diner will earn 18 000 dollars by cleaning up verses 14 000 dollars by not cleaning. Similarly All-You-Can-Eat Café? will be better off by cleaning up both in the case where GoodGrub Diner cleans up and in the case where GoodGrub Diner doesn’t clean, comparing with the cases All-You-Can-Eat Café? doesn’t clean.

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8 0
2 years ago
A professional office center is purchased for $475,000. The land value is 20% of the total acquisition cost. What is the annual
Vika [28.1K]

Answer:

$9,744

Explanation:

In the case of the annual  IRS depreciation deduction, the time period for each category assets are different. Like for commercial real estate, the time period is 39 years, for residential real estate, it would be 27.5 years.

The computation is shown below:

= (Purchase value of professional office center × remaining percentage) ÷ (applicable time period)

= ($475,000 × 80%) ÷ (39 years)

= ($380,000) ÷ (39 years)

= $9,744

3 0
2 years ago
Cox Footwear pays a constant annual dividend. Last year, the dividend yield was 3.2 percent when the stock was selling for $35a
marissa [1.9K]

Answer:

The current price of the stock is b. $38.62

Explanation:

Hi, in order to find the current price of the stock, first we need to find the amount paid as a constant dividend, the formula is as follows.

DivYield=\frac{Dividend}{Price}

So, things should look like this

0.032=\frac{Dividend}{35}

Dividend=0.032*35=1.12

So the amount of constant dividend tha this company is paying is $1.12/share

Now we can find the current price using the same equation and solving for "Price",

0.029=\frac{1.12}{Price}

Price=\frac{1.12}{0.029} =38.62

Therefore, the current price of the stock is $38.62, that would be option b.

Best of luck:

7 0
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