If firm 'A' (worth $750,000 by itself) acquires firm 'B' at an acquisition cost of $200,000 (paying zero premium) and claims to be able to extract $25,000 in annual economies of scope, then which of the following market values is the best approximation of a value that reflects a market belief that firm 'A' actually can extract at least $25,000 in annual economies of scope? In other words, what will the new combined value of firms 'A' and 'B' be AFTER firm 'A' acquires firm 'B' and successfully convinces the market they have achieved the $25,000 of economies of scope? (Assume a WACC of 5.4% for all firms involved both before and after the acquisition).a. $687,963b. $3,703,704c. $950,000d. $1,21,963e. $975,000f. $951,350g. $662,963h. $1,950,400i. $1,412,963j. $462,963

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business. the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. question 1 options: true false

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?