Percentage values of the average costs of merged firms

Assignment Help Finance Basics
Reference no: EM132466091

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. Joe's body shop has costs of $2,200,000 and sales of $4,000,000. Together the 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 merged firms and the combined average costs of two nearby competitors. These competitors continue to sell tires and auto repair separately, having total costs $2,000,000 and sales of $2,500,000 while the other has costs of $2,400,000 and $3,200,000 respectively.

Reference no: EM132466091

Questions Cloud

What is the final adjusted sale price of the comparable : A comparable property sold recently for $153,000. The adjustments for the various elements of comparison have been calculated as follows:
Company new required rate of return-porter plumbing : Porter Plumbing's stock had a required return of 13% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%.
What is the amount that abc consulting would report : What is the amount that ABC Consulting would report as the ending balance in the B. Conway, Capital account at the end of the year?
What is the cost of capital for the stock to firm : The par value of the stock is ?$100?, and the dividend rate is 15 percent. What is the cost of capital for the stock to your? firm?
Percentage values of the average costs of merged firms : 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
What are the corresponding holding period returns : What are the corresponding holding period returns from t=0 to t=1 of the stock in each of the five scenarios shown in the table?
Prepare allertons entry to record its acquisition of deluxe : Prepare Allerton's entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $137,000 and $88,000.
Determine service response time balanced scorecard measures : Determine Service response time balanced scorecard, Information system availability, New product development time measures
Quality assurance matrix and quality control story : Describe the tools that can be implemented in the application of Quality Assurance Matrix (QAM) and Quality Control Story.

Reviews

Write a Review

Finance Basics Questions & Answers

  True or false question based on investment plan

Senior management of Baldwin meets to estimate their investment plan for the year. They decide to fully fund a plant and machine buy through issuing 50,000 shares of stock plus a new bond issue.

  What was the dividend yield in fiscal year

At the end of 2013, Crane Industries Inc.'s stock price was $30.75. A year later it was $34.88. Per share dividends over the year were $0.55, while earnings per share were $1.33. What was the dividend yield in fiscal year 2014

  What does the present value of an annuity indicate

What formula is used to determine the present value of an annuity? What does the present value of an annuity indicate?

  How many futures contract does he have to purchase

The beta of the stock is 1.4. How many futures contract does he have to purchase? If it's a short position, report a negative number.

  Define the differences between primary

Define the differences between primary, secondary and tertiary sources in a secondary search?

  What is the purpose of the adjusted trial balance

At the end of the period, Sanders Company reports the following amounts: Assets = $12,000; Liabilities = $8,000; Revenues = $5,000; Expenses = $3,000.

  Find the amount available for the daughter college expenses

You decide to make deposits into an educational savings account on each of your daughter's birthdays, starting with her first birthday.

  Relationship between total cost and volume of activity

Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?

  Determine fair value of bond

A 1,000 face value bond has remaining maturity of ten years and a required return of 9 percent. The bond's coupon rate is 7.4%. Determine the fair value of this bond?

  How is cost of goods sold determined

How is cost of goods sold determined?- How do the perpetual and periodic inventory accounting systems differ from each other?

  The corporations tax rate is 30 what is the deferred tax

xyz corporation expensed on the financial statements 2000000 for depreciation expense during the year using straight

  Internal rate of return and net present value

Can someone please help me understand how to calculate Internal rate of return and net present value?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd