FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Determine the net income of a comparable firm based on the following information: value of target firm = $8,000,000; net income of target firm =

Determine the net income of a “comparable” firm based on the following information: value of target firm = $8,000,000; net income of target firm = $400,000; stock price of “comparable” firm = $60.00; and 600,000 shares of stock outstanding for the comparable firm.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To determine the net income of a comparable firm we can use the pricetoearnings PE ratio method ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Contemporary Approach

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

3rd edition

77639731, 978-0077639730

More Books

Students also viewed these Finance questions

Question

★★★★★
The Fashion Rack has a monthly accounting period. The firms chart of accounts is shown below and on the next page. The journals used to record transactions are the sales journal, purchases journal,...

Answered: 1 week ago

Question

★★★★★
1. Identify the designated Shariah internal control functions under the Shariah Governance Policy Document of Bank Negara Malaysia issued in 2019 and discuss the Shariah functions of any two thereof....

Answered: 1 week ago

Question

★★★★★
The net income of Novis Corporation is $90,000. The company has 35,000 outstanding shares, and a 100 percent payout policy. The expected value of the firm one year from now is $1,650,000. The...

Answered: 1 week ago

Question

★★★★★
Cungs Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $610,000 in December. Because Cungs Dress Delivery is in the mail order...

Answered: 1 week ago

Question

★★★★★
Near the end of a marathon race, the first two runners are separated by a distance of 45.0 m. The front runner has a velocity of 3.50 m/s, and the second a velocity of 4.20 m/s. (a) What is the...

Answered: 1 week ago

Question

★★★★★
The passage indicates that Elsies feelings towards Clover can best be described as: A. Admiring. B. Objective. C. Malevolent. D. Predictable.

Answered: 1 week ago

Question

★★★★★
6.83 Plant Genetics In Exercise 5.76, a cross between two peony plants-one with red petals and one with streaky petals-produced offspring plants with red petals 75% of the time. Suppose that 100...

Answered: 1 week ago

Question

★★★★★
Jenny Thompson Construction Company has entered into a contract beginning January 1, 2007, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years...

Answered: 1 week ago

Question

★★★★★
Two securities, B1 and B2 are trading in the economy and their payoff structure and prices are given in the above. Suppose that annualized continuously compounded interest rate is r, and time to...

Answered: 1 week ago

Question

★★★★★
Suppose that a learning algorithm is trying to find a consistent hypothesis when the classifications of examples are actually random. There are u Boolean attributes, and examples are drawn uniformly...

Answered: 1 week ago

Question

★★★★★
Assume a tax rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare. No one will reach the maximum for FICA. Complete the following payroll register. (Use the percentage method to...

Answered: 1 week ago

Question

★★★★★
What is a "hierarchy of objectives"? Describe the various classification of objectives.

Answered: 1 week ago

Question

★★★★★
Solve the integral:

Answered: 1 week ago

Question

★★★★★
What is meant by Non-programmed decision?

Answered: 1 week ago

Question

★★★★★
What are the different techniques used in decision making?

Answered: 1 week ago

Question

★★★★★
Which of the following is true about an inert electrode? [A] It does not participate in the chemical reaction [B] It acts as a source or sink for electrons [C] Both a and b [D] None of the above

Answered: 1 week ago

Question

★★★★★
explain five advantages of the organization forms a company might have as it evolves from a start up to a major corporation

Answered: 1 week ago

Question

★★★★★
The comparative statements of financial position of Menachem NV at the beginning and end of the year 2019 appear below. Net income of ¬34,000 was reported, and dividends of ¬23,000 were paid...

Answered: 1 week ago

Question

★★★★★
On December 1, 2016, the accountant for Euro Specialty Products downloaded the company's November 30, 2016, bank statement from the bank's website. The balance shown on the bank statement was...

Answered: 1 week ago

Question

★★★★★
What procedures are used to achieve internal control over banking activities?

Answered: 1 week ago

Question

★★★★★
1. In discussing a firm's latest financial statements, a manager says that it is the "results on the bottom line" that really count. What does the manager mean? 2. If a firm's expenses equal or...

Answered: 1 week ago

Question

★★★★★
Suppose an environmental impact study shows that the coral reef near Port Douglas, Australia, can sustain 20 scuba diving tours per week. Discuss the pros and cons of setting a quota of 20 dive tours...

Answered: 1 week ago

Question

★★★★★
The United States wheat market is shown in Figure 17P-3. Suppose the U.S. wants to protect its wheat industry by imposing a tariff of $1/bushel on foreign wheat, which currently sells at world price...

Answered: 1 week ago

Question

★★★★★
In what circumstances will a tax make a market less efficient? In what circumstances will a tax make a market more efficient?

Answered: 1 week ago

Previous Question Next Question