Trisha Corp. has 40 million shares outstanding and trades at $45 per share. Trisha has net identifiable assets with a book value of $1.5 billion and a fair value of $1.8 billion. Regal Enterprises purchases all of Trisha Corp.'s stock for $55 per share. How much will Regal Enterprises record as goodwill upon acquiring Trisha Corp.?
Q: I want to correct answer general accounting question
A: Step 1: Definition of Factory Overhead CostsFactory overhead costs (also called manufacturing…
Q: Need help
A: The Return on Stockholders' Equity (ROE) is calculated using the formula:ROE= Net Income /…
Q: Compute the debt equity ratio of this financial accounting question not use ai
A: Step 1: Definition of Debt-Equity RatioThe Debt-Equity Ratio is a measure of financial leverage that…
Q: Zombie Corp. has a profit margin of 7.6%, total asset turnover of 3.9, and ROE of 32.55%. What is…
A: ROE = Profit Margin * Total Asset Turnover * Equity MultiplierRearranging the formula to solve for…
Q: I want to correct answer general accounting question
A: To calculate the cost of goods sold (COGS) for FY 2024:Beginning Finished Goods Inventory (Jan 1,…
Q: Determine the cost per equipment unit of conversion for the month of April
A: Explanation of Work in Process (WIP) Inventory:Work in process (WIP) inventory consists of partially…
Q: ?
A: Step 1: Contribution margin ratio.= (unit selling price - unit variable cost) / unit selling price=…
Q: I want to correct answer general accounting
A: The Capital Asset Pricing Model (CAPM) is used to determine the cost of common stock by assessing…
Q: What is the companys predetermined overhead rate?
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a standard rate used…
Q: Manufacturing overhead was 25000
A: Explanation of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured (COGM) represents the…
Q: Can you help me with accounting questions
A: Step 1: Definition of Fixed-Asset Turnover RatioThe Fixed-Asset Turnover Ratio measures how…
Q: expert of general accounting answer
A: Step 1: Income before tax Income before tax = Sales revenues - Depreciation - Other operating costs…
Q: Solve this financial accounting problem
A: Explanation of Manufacturing Cycle Efficiency (MCE):Manufacturing Cycle Efficiency (MCE) is a…
Q: Calculate cash conversion cycle of this financial accounting question
A: Step 1: Define Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) measures the time taken by…
Q: True answer general accounting? ?
A: Step 1: Define Applied OverheadApplied Overhead refers to the manufacturing overhead costs allocated…
Q: Accounting question
A: Step 1: Define Standard Direct Labor RateThe standard direct labor rate is the total cost per hour…
Q: I want the correct answer with accounting
A: To calculate the sales volume variance for total revenue, we use the following formula: Sales Volume…
Q: Financial accounting question
A: Step 1: Define T-Bill Futures ContractsA T-Bill futures contract represents a standardized agreement…
Q: What was the income from operations? Give me solution
A: Step 1: Information givenFor part (a):Sales = $1,300,000Fixed costs = $52,700Variable costs =…
Q: 4 PTS
A:
Q: What is the effective after tax interest expense for the firm of this financial accounting question?
A: Step 1: Define After-Tax Interest ExpenseThe After-Tax Interest Expense represents the actual cost…
Q: General accounting
A: simple bro as we know Profit margin = Net income / Sales Now we need to find Sales = Assets * Total…
Q: Estimate ending inventory
A: To estimate Linden Corp.'s ending inventory, we use the Gross Profit Method, which follows these…
Q: Compute the debt equity ratio based on market values of this financial accounting question
A: Market Value of Equity = Number of Shares * Price per ShareMarket Value of Equity = 2,100,000 *…
Q: General Accounting Question
A: Step 1: Define Capital GainsCapital Gains refer to the profit earned from selling an asset for a…
Q: Gross profit percentage?
A: Explanation of Sales Revenue: Sales revenue represents the total amount of money a company receives…
Q: During the year
A: Concept of Cost of Goods Manufactured (COGM)Cost of Goods Manufactured (COGM) represents the total…
Q: Right Answer
A: Concept of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)EBITDA is a…
Q: What are the company days sales in receivable?
A: Explanation of Net Income:Net income represents the total earnings of a business after subtracting…
Q: Gross profit
A: Step 1: Information givenCost of goods sold = $720,000Sales = $1,250,000Step 2: Calculation of gross…
Q: MCQ
A: Approach to solving the question:Freeform Detailed explanation: To determine how many units were…
Q: General accounting
A: Step 1: Definition of Fixed Costs at Break-Even PointThe fixed costs at the break-even point…
Q: What is its total assets turnover on these financial accounting question?
A: Step 1: Definition of Total Asset TurnoverTotal asset turnover measures how efficiently a company…
Q: Financial Accounting please answer this question
A: To calculate the Earnings Per Share (EPS), we use the formula:EPS= Net Income−Preferred Dividends/…
Q: Harland Investments has purchased a total of 340 shares of BlueTech, Inc. common stock over the…
A: Step 1: Let's organize the stock purchase information1995: 40 shares @ $25/share (Cost basis =…
Q: MCQ
A: Explanation of Sales Revenue: Sales revenue represents the total amount of money generated from…
Q: Cool Comfort currently sells 360 Class A spas, 520 Class C spas, and 230 deluxe model spas each…
A: The question asks for the identification of the value of erosion.Business erosion is the reduction…
Q: Need answer
A: Explanation of Machine Cost for Accounting Purposes:Machine cost for accounting purposes includes…
Q: Need help with this accounting questions
A: Step 1: Definition of Unit Product CostThe unit product cost is the total cost incurred to produce a…
Q: hi expert please solve questions
A: Step 1:Step 2: Step 3: Step 4:
Q: Financial accounting question
A: Step 1: Define Break-Even PointThe break-even point in sales is the level at which total revenue…
Q: Solve
A: Q1: Under-applied or Over-applied OverheadCalculate Applied Overhead: Applied overhead =…
Q: Provide answer
A: Step 1: Definition of Asset DisposalAsset disposal occurs when a company sells or removes a fixed…
Q: Please get correct answer this financial accounting question
A: Step 1: Definition of Overhead Application in Job Order CostingOverhead application refers to the…
Q: PROVIDE CORRECT ANSWER GNERAL ACCOUNTING
A: Step 1: Definition of Debt-to-Equity RatioThe debt-to-equity (D/E) ratio is a financial metric that…
Q: Helpp
A: Explanation of Standard Direct Labor Rate:The Standard Direct Labor Rate refers to the predetermined…
Q: Answer
A:
Q: The Willow Mills Company mills barley into flour. The equivalent units are measured in terms of tons…
A: Explanation of Equivalent Units: Equivalent units are a concept used in manufacturing to express…
Q: MEG Adventures pays $525,000 plus $13,000 in closing costs to buy out a competitor. The real estate…
A: To compute the cost allocated to the building, we use the relative fair value method. This method…
Q: General accounting
A: Step 1: Definition of Straight-Line DepreciationThe straight-line depreciation method allocates the…
How much will regal enterprises record as
Step by step
Solved in 2 steps
- Veghie Co is acquiring Fruit Inc for $25,250 in cash. Veggie Co has 2350 shares outstanding at a market price per share of $39. Fruits Inc 1500 shares outstanding at $16 per share. Neither firm has outstanding debt. The incremental value (synergy) of the acquisition is $2300. What is the value of Veggie Co after acquisition? A) 92,700 B) 88,950 C) 56,650 D) 89,150 E) 73,750Northwest supply co. has 1209 shares outstanding at a market price of $20.65 per share. Radio Supply has 5,000 shares outstanding at a market price of $36.75 per share. Neither firm has any debt. Radio Supply is acquiring Northwest Supply. The incremental value of the acquisition is $1800. What is the value of Noethqest Supply to Radio Supply? A) 26,580 B) 30,900 C) 24,780 D) 32,700 E) 25,780Firm A is being acquired by Firm B for $62,000 worth of Firm B stock. The incremental value of the acquisition is $4,300. Firm A has 2,700 shares of stock outstanding at a price of $22 a share. Firm B has 10,400 shares of stock outstanding at a price of $31 a share. What is the actual cost of the acquisition using company stock?
- Mammoth Inc. is acquiring Snail Ltd. Mammoth's share price is $50 and Snail's share price is $10. Both firms have 1 million shares outstanding. Mammoth expects a discounted synergistic value of $5 million from the merging of operations of the two firms. If Mammoth pays cash of $11.5 million to Snail's shareholders, what is the value of the merged firm? $68.5 million $65.0 million $60.0 million $63.5 millionBlack Swan provided the following data for 2020: 1. On September 1, Black Swan received a P500,000 cash dividend from Dionysus Company in which Black Swan owns a 30% interest. 2. On October 1, Black Swan received a P60,000 cash dividend from Seesaw Corporation. Black Swan owns a 35% interest in Seesaw. 3. Black Swan owns a 10% interest in BST, which declared a P2.000.000 cash dividend on November 21. 2020 payable on January 23, 2021. What amount should be reported as dividend income for 2020? P700,000 P560,000 P500,000 P200,000Firm E is going to acquire Firm F. The acquisition will be done via a share exchange, whereby Firm E will exchange 2.65 of its shares for every one of Firm F's shares. Synergy is $1,250,000 in total. Firm E has 350,000 shares outstanding trading at $35 each. Firm F has 45,000 shares outstanding trading at $84 each. What would the exchange ratio have to be for the NPV of the deal to be zero? Question 1 options: A) 3.13 shares of E for every 1 of F B) 0.41 shares of E for every 1 of F C) 3.15 shares of E for every 1 of F D) 2.40 shares of E for every 1 of F E) 3.19 shares of E for every 1 of F
- Hastings Corporation is interested in acquiring Vandell Corporation. Hastings Corporation estimates that if it acquires Vandell Corporation, synergies will cause Vandell’s free cash flows to be $2.3 million, $2.9 million, $3.4 million, and $3.79 million at Years 1 through 4, respectively, after which the free cash flows will grow at a constant 5% rate. Hastings plans to assume Vandell’s $10.29 million in debt (which has a 7.4% interest rate) and raise additional debt financing at the time of the acquisition. Hastings estimates that interest payments will be $1.6 million each year for Years 1, 2, and 3. After Year 3, a target capital structure of 30% debt will be maintained. Interest at Year 4 will be $1.431 million, after which the interest and the tax shield will grow at 5%. Vandell currently has 1.5 million shares outstanding and a target capital structure consisting of 30% debt; its current beta is 1.10 (i.e., based on its target capital structure). Vandell and Hastings each have a…Davis acquires 100% of Ramos on January 1st, 2009. Ramos will be operated as a separate subsidiary. Davis will use the equity method to account for its investment in Ramos. In 2013, Davis has net income of $400,000 and pays dividends of $100,000. Ramos has NI of $200,000 and pays dividends of $75,000. At acquisition date, Davis has a building with a. BV of $800,000 and FV of $900,000. Both buildings have a remaining useful life of 10 years (assume straight line depreciation). At December 31, 2013 Davis had book value (BV) of Building of 5,000,000 and fair value (FV) of 6,000,000. Ramos had BV of Building of 2,000,000 and FV of 1,500,000. A) Prepare Consolidation worksheet D to reflect the necessary adjustment for dividends. B) How much are consolidated dividends for 2013 C) Prepare worksheet entry A at December 31, 2013(assume there is no goodwill)Croatia Inc. is in the process of acquiring Vistara Inc. on a share exchange basis. The information related to the two companies is provided below. Profit after tax Shares outstanding Earnings per Share PE Ratio EPS and Croatia Inc. $14,000,000 1,500,000 $8 15 As an analyst of Croatia Inc., you are required to calculate the following: Pre-Merger Market Value per Share of both companies. The maximum share exchange ratio Croatia Inc. can offer without the dilution of: Market Value per Share Vistara Inc. $6,000,000 1,600,000 $5 10 Note: Do not round off any intermediate calculations. Only the rations shall be rounded off up to four decimals. (1) Pre-Merger MV: Croatia Inc- $50. Vistara Inc. = $120.(1) (1) 0.6250 (2) 0.4167 (1) Pre-Merger MV: Croatia Inc. $120. Vistara Inc = $50. () (1) 0.6200 (2) 0.4221 (1) Pre-Merger MV: Croatia Inc.= $120, Vistara Inc. $50 (1) (1) 06250 (2) 04167 (1) Pre-Merger MV: Croatia Inc.= $110, Vistara Inc. = $120.) (1) 0.6200 (2) 0.4221
- You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the transaction value for this acquisition of Target Co.? Acquisition of Target Co. by Acquirer Ltd. Target Share Price ($/sh.) $85.40 Acquisition Premium 15% Diluted Shares Outstanding (MM) 670 Target Total Debt Target Cash and Cash Equivalents % Debt Financing % Equity Financing Equity Financing Fees Debt Financing Fees Other Transaction Costs $3,562 $5,147 40% 60% 4.0% 1.5% $800BUSINESS COMBINATION Answer it with solution:Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of P100,000. The company holds net assets of P2,400,000 on January 1, 20x1. Ón that date, Jared Company purchases 40% of the outstanding stock for P1,200,000, which gives it the ability to have joint control with Glassman Company over Shaun. At the purchase date, the excess of Jared's cost over its proportionate share of Shaun's book value was assigned to goodwill. REQUIRED: 5. How much is the net investment income each year? 6. On December 31, 20x2, what is the investment in Shaun Company balance (equity method) in Jared's financial records? Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of P100,000. The company holds net assets of P2,400,000 on January 1, 20x1. Ón that date, Jared Company purchases 40% of the outstanding stock for P1,200,000, which gives it the ability to have joint control with Glassman Company over Shaun. At the purchase date, the…
