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Nutka1998 [239]
1 year ago
11

Kosher Pickle Company acquires all the outstanding stock of Midwest Produce for $12.5 million. The fair value of Midwest's asset

s is $8.5 million. The fair value of Midwest's liabilities is $1.3 million. Calculate the amount paid for goodwill
Business
1 answer:
Tems11 [23]1 year ago
6 0

Answer:

$5.3 million

Explanation:

Kosher pickle company acquires outstanding stock of Midwest produce for $12.5 million

Fair value of Midwest assets is $8.5 million

Fair value of Midwest liabilities is $1.3 million

The first step is to calculate the fair value of net identifiable assets

= $8.5 million-$1.3 million

=7.2 million

Therefore, the amount paid for goodwill can be calculated as follows

= $12.5 million-$7.2 million

= $5.3 million

Hence the amount paid for goodwill is $5.3 million

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Answer: 14.9%

Explanation:

18300/12770x100%

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Bethany wants to buy a pair of designer boots. To find the best price, she searches the Internet and compares prices among the e
viva [34]

Answer:

The bargaining power of customers .

Explanation:

As Bethany wants to buy a pair of designer boots and to find the best price, she searches the Internet and compares prices among the eight sites that sell the boots, she is using the bargaining power of buyers or customers from the Porter's five competitive forces. This force illustrates that customers are definitely have many options available with them for buying a particular product. Customers will be having much power when the number of available options increases because it becomes very easy for the customers to choose from those options or they can switch to some other seller quite easily and quickly in this case. Conversely, consumers will have less power when there are only fewer options present in the market. In this case Bethany has 8 different web sites present in front of her and with the single click of mouse button and flick of her fingers, she can easily compare the prices and options, that's why she can practice her bargaining power.

6 0
1 year ago
Justin discounts a 115-day note for $26,000 at 8.5%. the effective rate of interest to the nearest tenth percent is:
lesya692 [45]
8.7%

$26,000 x .085 x 115/360 = $705.97
$26,000 - $705.97 = $25,294.03
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4 0
1 year ago
Read 2 more answers
A corporate bond with a face value of $1,000 matures in 4 years and has a coupon rate of 6.25 percent. The current price of the
postnew [5]

Answer:

8.28%

Explanation:

We use the Rate formula shown in the spreadsheet for this question

The NPER specifies the time period.  

Given that,  

Present value = $932

Future value or Face value = $1,000  

PMT = 1,000 × 6.25% ÷ 2 = $31.25

NPER = 4 years × 2 = 8 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

the yield to maturity is 8.28%

6 0
1 year ago
Hedge Fun is a landscaping firm that specializes in topiary. It contracts with the owners of 125 local homes and provides its se
tekilochka [14]

Answer:

Break-even level of output = 56

Explanation:

Given:

Annual Revenue = $1,300

Total Fixed cost = $28,000

Variable cost = $800

Computation of contribution:  

Contribution = Sales - Variable cost

Contribution = Revenue - Variable cost

Contribution = $1,300 - $800

Contribution = $500

Computation of Break-even level of output:

Break-even level of output = Total Fixed cost / Contribution

Break-even level of output = $28,000 / $500

Break-even level of output = 56

3 0
2 years ago
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