That means you're still BioMed's resident economic expert.
You will pay for Target Co by issuing new shares. There are no expected synergies from the transaction. If you pay no premium to buy Target Co, what will your earnings per share be after the merger?
What will your earnings per share be after the merger? What explains the change in earnings per share in part a? Are your shareholders any better or worse off?
What will your price-earnings ratio be after the merger if you pay no premium? Depending on the success of the new product, Gladstone may have one of four values next year: These outcomes are all equally likely, and this risk is diversifiable. Ignore all other market imperfections, such as taxes.
What is the yield-to-maturity of the debt? What is its expected return? If Gladstone does not issue debt, what is its share price? Why does your answer differ from that in part e?
Kohwe currently has 5 million shares outstanding, and it has no other assets or opportunities. Assume that the following facts apply: Under either the lease or the purchase, Big Sky must pay for insurance, property taxes, and maintenance.
You would have cash flows for owning and leasing in years You should also have tax on residual value in year 4 in cost of owning.
The equipment falls into the MACRS 3-year class, and it would be used for three years and then sold, because ABC plans to move to a new facility at that time. The lease would also include maintenance. ABC is in the 20 percent tax bracket, and it could obtain a three-year simple interest loan to purchase the equipment at a before tax cost of 10 percent.
Should ABC lease or buy? Identify one racial group from the list below: How did the various groups you researched fight this legislation? How did the various groups you researched promote this legislation? On the other hand, because Biomed is relatively small compared to the size of the market, it can sell as much of the cream as it likes at the prevailing market price.
Currently there are no plans for upgrading or adding to this equipment. The goal was to use this information to determine the profit maximizing output level and use that information to estimate the optimal size for the new unionized workforce.
Once the price has been set, BioMed and other manufacturers simply have to decide how much of the cream, if any, they want to produce and sell.
Consequently, BioMed has to choose the size of its workforce and therefore its production capacity before it knows the price it will get for its product. This is the best estimate the consultant can provide given the lack of information coming from the government about the issue.
Complete the following tasks: Estimate the expected monthly profit in each case. You simply have to determine the best daily production capacity for the next 12 months, not the number of workers required.
Write a short report summarizing the results of your analysis and any recommendations. Posts navigation Number of items in cart:Estimate the expected daily profit in each case. 2. Recommend an average daily production capacity for the next 12 months given the uncertainty about the price of DermaPlus TM.
Your recommendation will be used to set the size of the manufacturing plant's unionized workforce.
1. Determine the profit-maximizing average monthly production capacity for DermaPlus™for each of the possible reference-based prices identified by the consultant.
Estimate the expected monthly profit in each case. 2. Recommend an average monthly production capacity for the next 12 months given the uncertainty about the price of DermaPlus™. Determine the profit-maximizing average monthly production capacity for DermaPlusTM for each of the possible reference-based prices identified by the consultant.
Estimate the expected monthly profit in . Jun 17, · Determine the profit-maximizing average daily production capacity for DermaPlus™ for each of the possible reference-based prices identified by . Jun 17, · Determine the profit-maximizing average daily production capacity for DermaPlus™ for each of the possible reference-based prices identified by the consultant.
Determine The Profit Maximizing Average Daily Production Capacity For Dermaplus had started working on before he retired. Harry explains that BioMed has a manufacturing plant that produces a prescription topical cream called DermaPlus ™, which is used for treating certain skin conditions.