RiverRocks (whose WACC is 12.5%) is considering an acquisition of Raft Adventures (whose WACC is 15.9%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why? The appropriate discount rate for RiverRocks to use to evaluate the acquisition is %. (Round to one decimal place.)

RiverRocks (whose WACC is 11.2%) is considering an acquisition of Raft Adventures (whose WACC is 15.1%). What is the appropriate discount rate for River Rocks to use to evaluate the acquisition? Why?

RiverRocks​ (whose WACC is 11.8%​) is considering an acquisition of Raft Adventures​ (whose WACC is 15.2%​).    The appropriate discount rate for RiverRocks to use to evaluate the acquisition is ___ %?   What is the appropriate discount rate for RiverRocks to use to evaluate the​ acquisition? Why?   A. Raft​ Adventures' WACC is the most appropriate discount rate to account for the risk of Raft​ Adventures' cash flows.   B. ​RiverRocks' WACC is the most appropriate discount rate to account for the risk of Raft​ Adventures' cash flows.   C. An average WACC from RiverRocks and Raft Adventures will best account for the risk of Raft​ Adventures' cash flows.   D. The​ risk-free rate will best account for the risk of Raft​ Adventures' cash flows since RiverRocks will pay cash for the transaction.

If Genie went ahead with the acquisition of Aladdin, what is the total value of the acquisition? ( What is the maximum price per share that Genie should be willing to pay for this acquisition?   3)If Genie decided to go ahead with the cash acquisition, what will be its price per share after the acquisition?

Carla Vista Company is considering the acquisition of Kingbird, Inc. To assess the amount it might be willing to pay, Carla Vista makes the following computations and assumptions. A. B. C. Kingbird, Inc. has identifiable assets with a total fair value of $6,016,000 and liabilities of $3,719,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 25% higher than book value, and land with a fair value 50% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Kingbird, Inc. Kingbird, Inc.'s pretax incomes for the years 2020 through 2022 were $472,100, $573,300, and $372,700, respectively. Carla Vista believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments for the following items included in pretax earnings: Depreciation on Buildings (each year) Depreciation on Equipment…

Island, Inc. made a basket purchase involving four assets. Their market values were A: $56,000; B: $42,000 C: $44,000; and D: $58,000. The price Island paid for the four assets was $145,000. To the nearest dollar, what final price will be recorded for asset D? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) ... O A. $3,000 O B. $31,900 O C. $42,050 O D. $58.000

Mike Limited, a software development company is contemplating the acquisition of Ross Limited by means of a shareissue. The combination of the two firms' operations will result in economies of scale and the additional value generatedis estimated to be R24 million. It was agreed that the purchase consideration for the acquisition should be based on anexchange of 1.4 shares of Ross Limited for each share of Mike Limited.The key acquisition data provided for this acquisition is as follows:Mike Limited possesses 18.8 million shares with a market price of R32 per share and earnings after tax of R26 million,whereas Ross Limited has 13.2 million shares with a market price of R28 per share and earnings after tax of R19 million.Required:1.1 Calculate the combined value of the proposed acquisition. (3 marks)1.2 Calculate the total number of shares in the proposed acquisition. (2 marks)1.3 Determine the proposed post-acquisition market price per share. (2 decimal places) (2 marks)1.4 Will the…

P Company is considering the acquisition of S Inc. To assess the amount it might be willing to pay, P makes the following computations and assumptions: A. S Inc. has identifiable assets with a total fair value of $8,000,000 and liabilities of $5,300,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 30% higher than book value, and land with a fair value 60% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Barkley, Inc. B. S Inc.'s pretax incomes for the years 2010 through 2012 were $700,000, $900,000, and $550,000, respectively. P believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments for the following items included in pretax earnings: Depreciation on Buildings (each year) 580,000 Depreciation on Equipment (each year) 30,000 Extraordinary Loss (year 2012)…

Zoom owns 50 non-financial assets. It has the ability to purchase those assets from four markets (with same specification) and wishes to measure their fair values for the purpose of the revaluation policy. Four markets currently exist for this type of non-financial asset; Zoom has transacted regularly in three of them. At measurement date, the volume, prices and various costs of each non-financial asset in each respective market are as follows: Market Sale price Past volume with Zoom Total market volume Transaction costs Transport costs East $46,000 1,200 180,000 $500 $400 South $46,000 1,500 150,000 $400 $700 West $45,000 0 200,000 $300 $600 North $45,000 1,700 120,000 $200 $500 Based on the above information, which market is the most advantageous market (if principle market is restricted) and what is the fair value of all 50 non-financial assets under the most advantageous market as at the measurement date assuming that the current use of this type of non-financial…

Mike Limited, a software development company is contemplating the acquisition of Ross Limited by means of a share issue. The combination of the two firms' operations will result in economies of scale and the additional value generated is estimated to be R24 million. It was agreed that the purchase consideration for the acquisition should be based on an exchange of 1.4 shares of Ross Limited for each share of Mike Limited.The key acquisition data provided for this acquisition is as follows:Mike Limited possesses 18.8 million shares with a market price of R32 per share and earnings after tax of R26 million, whereas Ross Limited has 13.2 million shares with a market price of R28 per share and earnings after tax of R19 million. Required:1 Calculate the combined value of the proposed acquisition. 2 Calculate the total number of shares in the proposed acquisition. 3 Determine the proposed post-acquisition market price per share. 4 Determine the purchase price of Ross Limited that is implied…