O 1 75%AT&T LTE11:52 AM17ExitConglomerate2.If Ford Motor Company bought TheGoodyear Tire & Rubber Company, thiswould be an example of amerger.HorizontalVerticalConglomerateDiagonal3.A rights offering that gives existing targetshareholders the right to buy shares in

Horizontal merger is the merger in which two firms consolidates that belongs to the same…

Answered: O 1 75% AT&T LTE 11:52 AM 17 Exit…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 10MCQ

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This problem is a variation of P 12–10 focusing on the fair value option.]On January 4, 2018, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling Companycommon stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the abilityto exercise significant influence over Lavery’s operations. Runyan chose the fair value option to account forthis investment. Runyan received dividends of $2.00 per share on December 15, 2018, and Lavery reported netincome of $160 million for the year ended December 31, 2018. The market value of Lavery’s common stock atDecember 31, 2018, was $31 per share. On the purchase date, the book value of Lavery’s net assets was $800million and:a. The fair value of Lavery’s depreciable assets, with an average remaining useful life of six years, exceededtheir book value by $80 million.b. The remainder of the excess of the cost of the investment over the book value of net assets purchased wasattributable to…
Barnum Company stock sells at P70 a share with rights on. The subscription price is P55. Four rights are needed to purchase a new share of stock. What is the value of each right? A. P1.00B. P2.00C. P3.00D. P4.00E. None of the above
Ch. 29. In 2020, CVR Energy, Inc. began purchasing stocks of Delek US Holdings, Inc. CVR acquired 15% stake in Delek in hopes to replace 3 of Delek’s board members. This is an example of which of the following? Group of answer choices white knight street sweep tender offer
Mf6. Goldman Sachs is underwriting instacart's IPO, They have estimated the market is willing to purchase 322 million shares of instacart at a price of 68 per share Goldman offers Instacart the choice of either a firm commitment with a price of $43 and a spread of $1.10, or a best efforts with a commission of $4.77 per share. How many shares does Instacart need to sell to prefer the best efforts offering? Note Answer in millions, report two decimal places.
A5 3a QRS N-Queries Company has an exciting new project that will cost $10,000,000. The company proposes to finance this project by issuing new shares with a rights offering. Currently, the company has 2,000,000 shares outstanding, each valued in the financial market at $30. With the rights offering, shareholders will be able to purchase one new share for a subscription price of $10. a. What is the rights-on price for each share, M0?
A5 3f QRS N-Queries Company has an exciting new project that will cost $10,000,000. The company proposes to finance this project by issuing new shares with a rights offering. Currently, the company has 2,000,000 shares outstanding, each valued in the financial market at $30. With the rights offering, shareholders will be able to purchase one new share for a subscription price of $10. f. What is the value of a right after the ex-rights date, Re?
4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: e. If the entity would declare a 2 for 1 share split, How much would be the new par value?
A5 3d QRS N-Queries Company has an exciting new project that will cost $10,000,000. The company proposes to finance this project by issuing new shares with a rights offering. Currently, the company has 2,000,000 shares outstanding, each valued in the financial market at $30. With the rights offering, shareholders will be able to purchase one new share for a subscription price of $10. d. What is the value of a right before the ex-rights date, R0?
A5 3e QRS N-Queries Company has an exciting new project that will cost $10,000,000. The company proposes to finance this project by issuing new shares with a rights offering. Currently, the company has 2,000,000 shares outstanding, each valued in the financial market at $30. With the rights offering, shareholders will be able to purchase one new share for a subscription price of $10. e. What is the ex-rights price for each share, Me?
Case 2: the Investment Held for Trading Securities account in the book of Tatay (acquired in 2020) represents 30% ownership interest in Walanay, Inc. Walanay subsequently reacquires 50% of its outstanding shares from other investors. The previously held equity of Tatay have a fair value of three times its book value now. Tatay elected to measure NCI at ‘proportionate share’.With the stated facts, answer the following:1.How much is the Consideration Transferred?a. P 1,350,000.00b. P 1,900,000.00c. P 1,750,000.00d. P 1,800,000.002.How much is the Non-Controlling Interest in the acquiree?a. P 0.00b. P 150,000.00c. P 684,000.00d. P 1,200,000.003.How much is the Fair Value of the previously held equity interest in the acquiree?a. P 0.00b. P 540,000.00c. P 450,000.00d. P 500,000.00
14. Laursen plc has announced a 1 for 3 rights issue at a subscription price of £2. The current price of the shares is £3.04. What is the theoretical value of the right per existing share? a. £0.78 b. £0.35 c. £0.26 d. £2.78
14. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. Compensation expense recorded in year 1 would be?

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O 1 75% AT&T LTE 11:52 AM 17 Exit Conglomerate 2. If Ford Motor Company bought The Goodyear Tire & Rubber Company, this would be an example of a merger. Horizontal Vertical Conglomerate Diagonal 3. A rights offering that gives existing target shareholders the right to buy shares in