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Mnenie [13.5K]
2 years ago
3

Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2013. To obtain these shares, Flynn p

ays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Flynn in stock issuance costs.The book values for both Flynn and Macek as of January 1, 2013, follow. The fair value of each of Flynn and Macek accounts is also included. In addition, Macek holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands.Flynn, Inc Macek CompanyBook Value Fair ValueCash $900 $80 $80Receivables 480 180 160Inventory 660 260 300Land 300 120 130Buildings (net) 1,200 220 280Equipment 360 100 75Accounts Payable 480 60 60Long-term liabilities 1,140 340 300Common stock 1,000 80 Additional paid-in capital 200 0 Retained Earnings 1,080 480 1. By how much will Flynn's additional paid-in capital increase as a result of this acquisition?(A) $150,000.(B) $160,000.(C) $230,000.(D) $350,000.(E) $360,000.
Business
1 answer:
hichkok12 [17]2 years ago
4 0

Answer:

D) $350,000.

Explanation:

The computation of the additional paid in capital is shown below:

= Issued shares × par value + Issued shares × (fair value - par value) - stock issuance cost

= 10,000 shares × $20 + 10,000 shares × ($36 - $20) - $10,000

= $200,000 + $160,000 - $10,000

= $350,000

The other information which is given in the question is not relevant. Hence, it will be ignored

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$1,000 par value zero-coupon bonds (ignore liquidity premiums).
Crazy boy [7]

10.70% - Option D

<u>Explanation:</u>

One-year interest rate one year from now:

=(1+.2750)^{\wedge} 2 /(1+16 \%)-1

=1.275 * 1.275 / 0.16

= 1.625625 divide by 0.16

=10.160

Therefore, an approximate answer is 10.70%

Respect Maturity (YTM) – in any case alluded to as recovery or book yield – is the theoretical pace of return or loan cost of a fixed-rate security, for example, a security. The YTM depends on the conviction or understanding that a financial specialist buys the security at the present market cost and holds it until the security has developed (arrived at its full worth), and that all premium and coupon installments are made in a convenient manner.

7 0
2 years ago
A retired woman has $200,000 to invest. she has chosen one relatively safe investment fund that has an annual yield of 9% and an
Helen [10]
<span>She is to invest $150,000 in the low risk found at 9%
 She is to invest $50,000 in the high risk found at 13%
   Let x = money invested at 9%
 Let y = money invested at 13%
   x+y = 200000
 .09x + .13 y = 20000
   since
  x = 200000-y
 then
  .09(200000-y) +.13y = 20000
 18000-.09y+.13y = 20000
 .04 y = 20000
 y = 50000
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8 0
2 years ago
Kim will only buy cars from Japanese automakers because she thinks cars made in the United States are of inferior quality. She h
slega [8]

Answer:

Perception barrier

Explanation:

Perception barrier in communication occurs when the preconceived idea that a person holds about a particular situation influences his choice of decision.

In such a situation , the perceiver makes a less effort in arriving at a choice as he already has a formed opinion as a driver of his choice which can always lead to a wrong choice except in a few cases.

This explains Kim's action as she is already biased about cars from United states.

8 0
2 years ago
Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 201
Maksim231197 [3]

Answer:

The answers are:

  1. $80,000
  2. $80,000

Explanation:

The nominal GDP includes all the production of final and legal products and services. The real GDP is the nominal GDP adjusted to inflation.

Peg's contribution to nominal GDP in 2015 was $80,000 (4,000 nail sets x $20 per nail set). If 2015 was the base year, in this case real GDP is the same as nominal GDP.

3 0
2 years ago
Read 2 more answers
Within her company, Nadine utilizes a management style that varies according to the individual and environmental situation, with
Semmy [17]

Answer:

contemporary

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Contemporary management involves planning, leading, organizing and controlling operations to achieve organizational goals. Managers at each level of an organization are responsible for using resources effectively.

4 0
2 years ago
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