Company A has a market value of equity of $2,000 million and 80 million shares outstanding. Company B has a market value of equity of $400 million and 25 million shares outstanding. Company A announces at the beginning of 2019 that is going to acquire Company B.
The projected pre-tax gains in operating income (in millions of $) from the merger are:
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Pre-tax Gains in Operating Income | 12 | 16 | 28 | 38 |
45 |
The projected pre-tax gains in operating income are expected to grow at 4% after year 2023. The company is using a discount rate of 8% to value the synergies. The marginal corporate tax rate is 35%.
Company A has decided to pay a $300 million premium for Company B. Assume that capital markets are efficient and that there is a 100% probability the deal will be closed.
If Company A were to offer 0.80 share of Company A for each share of company B, by how much the price per share of Company A would change at the time of the announcement of the acquisition?
In: Finance
3- Economics of Innovation and Intellectual Property Rights: - Patents, copyrights, and trademarks - R&D races, digital innovation- regulation of digital platforms.
Please, summarize on 1 page.
In: Economics
What are the important components of an innovative organization? What is the role of leadership in innovation? How would one change the creative climate in an organization? How does one measure innovation?
In: Economics
1. User Access Innovation
a) Define this digital marketing tactic today.
b) Share (what is) the innovation relating to this tactic.
c) How this could be used for marketing in the future?
In: Operations Management
How would you use financial management to support innovation?
What are some of the obstacles to innovation that you have encountered? How do you propose to resolve these challenges?
In: Finance
Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2018 through 2021 except for differences in depreciation on an operational asset. The asset cost $280,000 and is depreciated for income tax purposes in the following amounts:
2018 $ 92,400
2019 123,200
2020 42,000
2021 22,400
The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows. 2018 2019 2020 2021 Accounting income before taxes and depreciation $ 150,000 $ 170,000 $ 160,000 $ 160,000 Assume the average and marginal income tax rate for 2018 and 2019 was 30%; however, during 2019 tax legislation was passed to raise the tax rate to 40% beginning in 2020. The 40% rate remained in effect through the years 2020 and 2021. Both the accounting and income tax periods end December 31. Required: Prepare the journal entries to record income taxes for the years 2018 through 2021.
In: Finance
Please give an example of a "real-world" firm, which is particularly strong (or weak) in that category Such as human, Innovation and creativity and Reputation
Intangible Resources
Human
• Experience and capabilities of employees.
• Trust.
• Managerial skills.
• Firm-specific practices and procedures.
Innovation and creativity
• Technical and scientific skills
. • Innovation capacities.
Reputation
• Brand name.
• Reputation with customers for quality and reliability.
• Reputation with suppliers for fairness, non–zerosum relationships.
In: Economics
Faldo Corp. is a public company and has 100,000 common shares
outstanding. In 2020, the company reported income from continuing
operations before income tax of $2,710,000. Additional transactions
not considered in the $2,710,000 are as follows:
| 1. | In 2020, Faldo Corp. sold equipment for $140,000. The machine had originally cost $80,000 and had accumulated depreciation to date of $36,000. | |
| 2. | The company discontinued operations of one of its subsidiaries during the current year at a loss of $290,000 before tax. Assume that this transaction meets the criteria for discontinued operations. The loss on operation of the discontinued subsidiary was $90,000 before tax. The loss from disposal of the subsidiary was $200,000 before tax. | |
| 3. | The sum of $520,000 was received as a result of a lawsuit for a breached 2017 contract. Before the decision, legal counsel was uncertain about the outcome of the suit and Faldo had not established a receivable. | |
| 4. | In 2020, the company reviewed its accounts receivable and determined that $54,000 of accounts receivable that had been carried for years appeared unlikely to be collected. No allowance for doubtful accounts was previously set up. | |
| 5. | An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings. |
Analyze the above information and prepare an income statement for
the year 2020, starting with income from continuing operations
before income tax. Calculate earnings per share as it should be
shown on the face of the income statement. (Assume a total
effective tax rate of 25% on all items, unless otherwise
indicated.) (Round per share answers to 2 decimal
places, e.g. 52.75. Disclose Discontinued operations tax
information separately.)
In: Accounting
1. It has been suggested that global warming may increase the frequency of hurricanes. The table given below shows the number of major Atlantic hurricanes recorded annually before and after 1990.
| before 1995 | after 1995 | |||
| year | # of storms | year | # of storms | |
| 1976 | 2 | 1996 | 6 | |
| 1977 | 1 | 1997 | 1 | |
| 1978 | 2 | 1998 | 3 | |
| 1979 | 2 | 1999 | 5 | |
| 1980 | 2 | 2000 | 3 | |
| 1981 | 3 | 2001 | 4 | |
| 1982 | 1 | 2002 | 2 | |
| 1983 | 1 | 2003 | 3 | |
| 1984 | 1 | 2004 | 6 | |
| 1985 | 3 | 2005 | 7 | |
| 1986 | 0 | 2006 | 2 | |
| 1987 | 1 | 2007 | 2 | |
| 1988 | 3 | 2008 | 5 | |
| 1989 | 2 | 2009 | 2 | |
| 1990 | 1 | 2010 | 5 | |
| 1991 | 2 | 2011 | 4 | |
| 1992 | 1 | 2012 | 2 | |
| 1993 | 1 | 2013 | 0 | |
| 1994 | 0 | 2014 | 2 | |
| 1995 | 5 | 2015 | 2 | |
Does this data is sufficient enough to claim that the number of annual hurricanes increased since 1995? Do the test at 8% significance level. To do the test, answer the following: a. Write down the null and alternative hypotheses. b. Get the excel output and answer the following: i. Fill the cell with the p-value of the test with green color ii. Fill the cell with the test statistic of the test with yellow color
In: Statistics and Probability
As a programmer in a java project, you have been asked
by your project manager to describe the most efficient way to store
the following assigned numbers 10,20,30,1000,200,350 for an
operation which involves on calculation such as sum and
average.
In: Computer Science