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Carl's Tires is planning to merge with Joe's Body Shop to offer a combined auto repair service shop. Carl's Tires has total costs of $1,500,000

Carl's Tires is planning to merge with Joe's Body Shop to offer a combined auto repair service shop. Carl's Tires has total costs of $1,500,000 and sales of $2,000,000, while Joe's Body Shop features costs of $2,200,000 and sales of $4,000,000. The combined firms will be able to achieve economies of scope sufficient to reduce costs by $400,000 while maintaining sales at current levels. Calculate the difference between the percentage values of the average costs of the merged firms and the combined average costs of two nearby competitors. These competitors continue to sell tires and do auto repair separately, having total costs of $2,000,000 and sales of $2,500,000, $2,400,000, and $3,200,000, respectively.
A. 23.56 percent
B. 28.45 percent
C. 34 percent

D. 22.19 percent

What's the bankruptcy-risk categorization of a firm with a 1.8 Z-score?
A. Low
B. High
C. Very low

D. Indeterminate

. _______ was/were one of the causes of the financial crisis that peaked in the fall of 2008.
A. Double taxation
B. Defaults by subprime mortgage borrowers
C. The American Recovery and Reinvestment Act

D. The Sarbanes-Oxley Act

Which of the following best explains why minimizing costs has potentially serious shortcomings as a means of maximizing owners' equity?
A. Spending lavishly can impress potential customers.
B. Without spending money on R&D to improve its products, a firm won't survive long in the constantly evolving economy.
C. Minimizing costs allows for the payment of larger dividends to company owners.
D. It's difficult to maximize market share without increasing spending.
If the current spot exchange rate is $0.9744 Canadian buys $1 U.S. and inflation is expected to be 1 percent over the next year in the United States with the Canadian inflation rate expected to be 5 percent over the same period, what would the exchange rate be at the end of the year using the relative form of the PPP equation?
A. $1.0234 Canadian
B. $0.9844 Canadian
C. $0.9373 Canadian

D. $0.9922 Canadian

Firm A from the table below is considering a merger with a competitor in its industry. However, the firm wishes to avoid proposing a merger with the competitor if it's likely to be challenged by the Department of Justice (DOJ) on the grounds that it exceeds guidelines for acceptable changes. image text in transcribed Given this, which of firm A's competitors has the largest percentage market share it could merge with while staying within DOJ guidelines?
A. F
B. G
C. D

D. C

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