Answer: Efficiency.
Explanation:
Efficiency is the ability to be highly productive with very little resources. When an individual/team is efficient there is little or no wastage of resources such as: time, money, manpower or raw materials.
Answer:
(a) The stock price of Harrods be after the acquisition is £ 31.45
(b) The exchange ratio between the two stocks would be 0.8550
Explanation:
Harrods PLC has a market value of £139 million and 5 million shares outstanding.
Selfridge Department Store has a market value of £41 million and 2 million shares outstanding.
a) If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge
Shares outstanding = 5 + 1.2 = 6.2 million
Stock price = £ 195 million ÷ 6.2 million = £ 31.45
b) alpha × 195 = 51
alpha = £51 million ÷ £195 million
= 26.15%
(195 ÷ ( 5 +X ) ) × X = 51
51 (5+X) = 195X
255 + 51X = 195X
144X = 255
X = 1.77 million shares
Exchange ratio would be: 1.77 ÷ 2
= 0.8550
Answer:
$90,000 and $86,000
Explanation:
In year 1, Lawrence Corp. purchased equipment for $100,000. Lawrence uses straight-line depreciation over a 10-year useful life with no residual value for financial reporting purposes.
In year 1, tax depreciation was $14,000. At the end of year 1, the carrying value for accounting purposes is $90,000, and the tax basis is $86,000.
Carrying value = Cost - Depreciation to date = 100,000 - (100.000 cost / 10 years) = $90,000
While tax basis = Cost - Tax depreciation = $100,000 - $14,000 = $86,000
Answer:
The NPV of the project at 8.7 percent will be 4,802.58
Explanation:
We will calcualte the present value of the cash inflow:
<u>year 3: </u>
Inflow 11,900.00
time 3.00
rate 0.087
PV 9,265.28
<u>Year 4:</u>
Inflow 11,900.00
time 4.00
rate 0.087
PV 8,523.71
<u>Year 6:</u>
Inflow 50,500.00
time 6.00
rate 0.087
PV 30,613.58
Then, we will add them together and subtract the investment amount
NPV: 30,613.59 + 8,523.71 + 9,265.28 - 43,600 = 4,802.58
