Answer:
Differential cost of Alternative B over Alternative A=$61,600
Explanation:
Differential Cost:
It is the difference in costs if there are more than one alternatives and one alternative is chosen while rejecting the other alternatives.
In order to calculate the differential cost of Alternative B over Alternative A, including all of the relevant costs we first calculate the total cost of both alternatives and then tae the difference.
Total Of Alternative A=Material Cost+Processing Cost+Equipment Rental+occupancy costs.
Total Of Alternative A=$28000+$34000+$11000+$19500=$92,500
Total Of Alternative B=Material Cost+Processing Cost+Equipment Rental+occupancy costs.
Total Of Alternative B=$64000+$34000+$28500+$27600=$154,100
Differential cost of Alternative B over Alternative A=Total Of Alternative B-Total Of Alternative A
Differential cost of Alternative B over Alternative A=$154,100-$92,500
Differential cost of Alternative B over Alternative A=$61,600
Answer:
Merger premium per share is equal to $2
Explanation:
Step 1. Given information.
- 1500 shares outstanding
- market price of 22
- Blackstone has 2.500 shares
- Outstanding price 38
- Blackstone acquire Rudy's for $36.000
Step 2. Formulas needed to solve the exercise.
Merger premium per share = (Blackstone acquire Rudy's /shares outstanding) - market price
Step 3. Calculation.
Merger premium per share = ($36,000/1,500) - $22 = $2
Step 4. Solution.
Merger premium per share is equal to $2
Answer:
due diligence
Explanation:
Due diligence refers to an entrepreneur or a business man/woman basically doing their homework, i.e. investigating thoroughly about a business opportunity before deciding to accept a business proposal, enter a new market, or start a new business.
Many times, management is required by law to perform due diligence before entering a new business or signing certain contracts, but it is just common sense that before you start a new business you will try to find out if the business is feasible or not.
Canada is by tar the most popular target for american franchisors seeking to establish franchises in other countries. Canada is a great market for franchisors because it's close/easy to travel to. They have a large market and are similar to the U.S. with their expansion and growth as an economy.