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ryzh [129]
2 years ago
11

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

arket price of $41 a share. Neither firm has any debt. Sally’s is acquiring Jennifer’s for $58,000 in cash. The incremental value of the acquisition is $2,500. What is the value of Jennifer’s Boutique to Sally’s?a. $26,000b. $27,600c. $57,100d. $58,200e. $60,500
Business
1 answer:
goldenfox [79]2 years ago
4 0

Answer:

c. $57,100

Explanation:

The computation of the value of Jennifer’s Boutique to Sally is shown below:

= (Number of shares outstanding ×  market price per share) + (incremental value of the acquisition)

= 2,100 shares ×$26 + $2,500

= $54,600 + $2,500

= $57,100

We simply find out the market value and then added it to the incremental value of the acquisition

All other information which is given is not relevant. Hence, ignored it

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When you feel that your idea is better,

  • Calm down yourself to prepare for conversation
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The skill you’re focusing on this week is:
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1 year ago
A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra va
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Answer:

If the number of male and female buyers is the same, then the best pricing strategy is to offer 2 different microwaves (option 3). One simple and cheap microwave for men and one with auto-defrost for women.

Explanation:

If most buyers were women (significantly higher), then option 2 would be better, since $121 per microwave is a much higher price and even though total sales numbers may not be maximized, profits will probably be maximized.

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3 0
1 year ago
Relevant interventions do not need acceptance or ownership from organization members
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7 0
1 year ago
A company plans to invest X at the beginning of each month in a zero-coupon bond in order to accumulate 100,000 at the end of si
anyanavicka [17]

Answer:

x = $16,078.46

Explanation:

$100,000 = 1.0101x + 1.0204x + 1.0309x + 1.0417x + 1.0526x + 1.0638x

$100,000 = 6.2195x

x = $100,000 / 6.2195 = $16,078.46

month               investment              value at end of month 6

1                         $16,078.46                    $17,104.74

2                        $16,078.46                    $16,924.68

3                        $16,078.46                    $16,748.39

4                        $16,078.46                    $16,575.73

5                        $16,078.46                    $16,406.59

6                        $16,078.46                    $16,240.87

total                  $96,470.76                     $100,001*

*the extra $1 is due to rounding errors.

5 0
1 year ago
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