Question
1. JOHN Ltd. needs to buy SMITH Ltd. by trading 0.8 of its offer for each portion of SMITH Ltd. Pertinent monetary information are as
1. JOHN Ltd. needs to buy SMITH Ltd. by trading 0.8 of its offer for each portion of SMITH Ltd. Pertinent monetary information are as per the following:
Value shares outstanding 158,00,000 3690,000
EPS (') 40 28
Market cost per share (') 250 160
(i) Illustrate the effect of consolidation on EPS of both the organizations.
(ii) The the executives of SMITH Ltd. has cited an offer trade proportion of 1:1 for the consolidation. Accepting that P/E proportion of XYZ Ltd. will stay unaltered after the consolidation, what will be the increase from consolidation for SMITH Ltd.?
(iii) What will be the increase/misfortune to investors of JOHN Ltd.?
(iv) Determine the greatest trade proportion adequate to investors of SMITH Ltd.
2. Steady expense and decremental cost are arrangements of ______
a. Minor expense
b. Strange expense
c. Wild expense
d. Differential expense
3. At the point when cost increments because of progress in degree of movement, such expansion in known as
a. Unavoidable expense
b. Wild expense
c. Gradual expense
d. Nothing from what was just mentioned
4. Any expense discovered in the wake of being brought about and has no utilization in cost control choices are called
a. Foreordained expense
b. Authentic expense
c. Unavoidable expense
d. Nothing from what was just mentioned
5. He extra expense brought about to deliver one extra unit is called _____
a. Gradual expense
b. Advancement cost
c. Peripheral expense
d. Cost of creation
6. Which among coming up next is the expense of looking for another item or improved items
or then again improved strategies for creation?
a. Typical expense
b. Exploration cost
c. Item cost
d. Opportunity cost
7. Which of coming up next is right about typical expense?
a. Sporadic and sudden expense
b. Charged to Costing P and L a/c
c. Part of Cost of Creation
d. The entirety of the abovementioned
8. Which among coming up next is right about unusual expense?
a. Expected at a given degree of yield
b. Charged to Costing P&L a/c
c. Part of Cost of Creation
d. Nothing unless there are other options
9. Which among the accompanying expenses are charged to Costing P&L a/c?
a. Assessed cost
b. Controllable expenses
c. Typical expense
d. Strange Expense
10. Ordinary expenses are for the most part ______ costs.
a. Controllable
b. Wild
c. Optional
d. Avoidable
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