Questions
Bloom Corp. is evaluating the possible acquisition of Tulip Inc. at the end of 2019. After...

  1. Bloom Corp. is evaluating the possible acquisition of Tulip Inc. at the end of 2019. After the merger, Bloom expects to operate Tulip as a wholly-owned subsidiary of Bloom. Bloom’s analysts have estimated the following information for Tulip as a stand-alone entity and if it becomes part of Bloom (this incorporates the impact of synergies expected from the merger). The risk-free rate is 5.5% and the market risk premium is 4.5%. Tulip Inc. has 120,000 shares of stock outstanding.

Stand-alone Tulip Inc. Data                                                                                  2020

Sales

$ 600,000

Cost of Goods Sold

$ 390,000

Selling & Administrative Expenses

$ 68,000

Interest Expense

$ 52,000

Depreciation

$ 40,000

Cash flow plow-back

$ 14,000

Beta

1.2

Growth in FCFE beyond 2020

4.4% per year forever

Tax Rate

34%

Tulip Subsidiary Projections after Merger

        2020

Sales

$ 700,000

Cost of Goods Sold

$ 400,000

Selling & Administrative Expenses

$ 72,000

Interest Expense

$ 74,000

Depreciation

$ 50,000

Cash flow plow-back

$ 26,000

Modified Beta

1.28

Growth in FCFE beyond 2020

4.8% per year forever

Tax Rate

40%

  1. Estimate the per share stock price of stand-alone Tulip Inc. as of year-end 2019.
  2. As of year-end 2019, what is the merger value of Tulip Inc. to Bloom Corp. (on a per share basis)?
  3. If Bloom offers a price of $10.25 for each share of Tulip, what is the NPV of the acquisition to Bloom Corp? To Tulip Inc.?

In: Finance

Hi...this is proposal final year project virtual run event.Can you give answer marketing department before, during...

Hi...this is proposal final year project virtual run event.Can you give answer marketing department before, during and after logical for event virtual run when COVID-19.Logistic event only before event because actually event cancelled due COVID-19.Now I'm marketing department to task virtual run event.Can you explain job scope?

Members Job scope (Before event)(During event) (After event)
Name

Logistic Department(Before event no COVID-19)

1.

2.

3.

4.

5.any list

Marketing Department(Virtual run when COVID-19 start)

1.

2.

3.

In: Economics

For the current year, Mary sojourned in Canada for 210 days. Also, for the current year,...

For the current year, Mary sojourned in Canada for 210 days. Also, for the current year, Steve, a long-time resident of Quebec, was living in Canada for the first 210 days in 2020, after which he permanently departed from Canada. Explain how these two individuals will be taxed in Canada.

In: Accounting

In 2010, the U.S. population was about 309 million. The overall birth rate was 13.0 births...

In 2010, the U.S. population was about 309 million. The overall birth rate was 13.0 births per 1000, and the overall death rate was 7.4 deaths per 1000.
a) Approximately how many births were there in the United States?
b) About how many deaths were there in the United States?
c) Based on births and deaths alone (not counting immigration or emigration), about how much did the U.S. population increase during 2010?
d) Suppose that during 2010 the U.S. population actually increase by 3.5 million. Based on this fact and your results from part (c), estimate how many people immigrated to the United States. What proportion of the overall population growth was due to immigration?

In: Statistics and Probability

In 2010, the U.S. population was about 309 million. The overall birth rate was 13.0 births...

In 2010, the U.S. population was about 309 million. The overall birth rate was 13.0 births per 1000, and the overall death rate was 7.4 deaths per 1000.
a) Approximately how many births were there in the United States?
b) About how many deaths were there in the United States?
c) Based on births and deaths alone (not counting immigration or emigration), about how much did the U.S. population increase during 2010?
d) Suppose that during 2010 the U.S. population actually increase by 3.5 million. Based on this fact and your results from part (c), estimate how many people immigrated to the United States. What proportion of the overall population growth was due to immigration?

In: Statistics and Probability

The value of a college degree is greater than it has been in nearly half a...

The value of a college degree is greater than it has been in nearly half a century, a least when compared to the prospect of not getting a degree (www.pewresearch.org, January 28, 2014). Due to this fact, more and more people are obtaining college degrees, despite the soaring costs. The accompanying table shows the proportions of college degrees awarded in 2010 by colleges and universities, categorized by a graduate's race and ethnicity.

The race and ethnicity of 500 recent graduates are recorded and shown in the last column of the table.

Race/Ethnicity 2010 Proportions Recent Numbers
White 0.73 350
Black 0.10 50
Hispanic 0.09 60
Asian 0.08 40


At the 5% significance level, test if the proportions have changed since 2010.

In: Statistics and Probability

1)You purchase an annuity investment that pays you a lump sum amount of $289,284 at the...

1)You purchase an annuity investment that pays you a lump sum amount of $289,284 at the end of the term. You must make $20,000 quarterly payments until the end of the term. If you earn an interest rate of 2%, how many of these quarterly payments must you make?

2) A bank lends money to a firm on 01/01/2010. According to the lending agreement, the bank will receive the following payments:

06/30/2010 - $2,300,000

12/31/2010 - $1,300,000

06/30/2011 - $5,700,000

12/31/2011 - $3,400,000

06/30/2012 - $360,000

12/31/2012 - $560,000

If the annual interest rate on the loan is 3.80%, how much did the firm borrow?

In: Finance

What do the liquidity ratios – Current, Quick, and Cash-to-Sales – reveal about JCP’s financial position?...

  1. What do the liquidity ratios – Current, Quick, and Cash-to-Sales – reveal about JCP’s financial position? Given that:

    Liquidity ratios – Current, Quick, and Cash-to-Sales ---

    Current Ratio: Current Assets/Current Liabilities-

    2012: 3,683/2,568= 1.43

    2011: 5,081/2,756= 1.84

    2010: 6,370/2,647= 2.40

    Quick Ratio: (Current Assets-Inventory)/Current Liability

    2012: (3,683-2,341)/2,548= 0.52

    2011: (5,081-2,916)/2,756= 0.78

    2010: (6,370-3,213)/2,647= 1.19

    Cash To Sales Ratio: Cash balance at the end of the period/Sales

    2012: 930/12,985= 0.05

    2011: 1,507/17,260= 0.08

    2010: 2,622/17,759= 0.14

In: Finance

Taxable income and pretax financial income would be identical for Bridgeport Co. except for its treatments...

Taxable income and pretax financial income would be identical for Bridgeport Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared.

Taxable income

2019

2020

2021

Excess of revenues over expenses (excluding two temporary differences)

$149,000

$192,000

$96,700

Installment gross profit collected

7,600

7,600

7,600

Expenditures for warranties

(5,500

)

(5,500

)

(5,500

)

   Taxable income

$151,100

$194,100

$98,800

Pretax financial income

2019

2020

2021

Excess of revenues over expenses (excluding two temporary differences)

$149,000

$192,000

$96,700

Installment gross profit recognized

22,800

-0-

-0-

Estimated cost of warranties

(16,500

)

-0-

-0-

   Income before taxes

$155,300

$192,000

$96,700


The tax rates in effect are 2019, 40%; 2020 and 2021, 45%. All tax rates were enacted into law on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years.

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019, 2020, and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

                                                          Dec. 31, 2021Dec. 31, 2019Dec. 31, 2020
                                                          Dec. 31, 2019Dec. 31, 2021Dec. 31, 2020
                                                          Dec. 31, 2021Dec. 31, 2020Dec. 31, 2019

In: Accounting

3. Open Roof or Closed Roof? In a recent World Series, the Houston Astros wanted to...

3. Open Roof or Closed Roof? In a recent World Series, the Houston Astros wanted to close the roof on their domed stadium so that fans could make noise and give the team an advantage at home. However, the Astros were ordered to keep the roof open unless weather conditions justified closing it. But does the closed roof really help the Astros? The table below shows the results from home games during the season leading up to the World Series. Use a 0.05 significance level to conduct a Chi-Square Test for Association. Is there sufficient evidence to show that there is a relationship between wins and the open/closed status of the roof?

Win Loss
Closed Roof 36 17
open Roof 15 11

Hypothesis:

Test Statistic and value:

P-value or critical value:

Conclusion:

In: Statistics and Probability