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Marketing Concepts, Inc

question 48

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Marketing Concepts, Inc. is considering the acquisition of Management Theories, Inc. at a cashprice of $1.5 million. Management Theories, Inc. has short?term liabilities of $500,000. As a resultof acquiring Management Theories, Inc., Marketing Concepts, Inc. would acquire the copyrights to a national best?seller which would provide an estimated cash flow of $300,000 for the next five years. The firm has a cost of capital of 20 percent. The approximate net present value of this acquisition is


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University Of Minnesota

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A health care system that provides medical services to all citizens regardless of their ability to pay.

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An aphorism suggesting that improvements in the general economy will benefit all participants within it.

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