The Owners of Arthouse Inc

question 17

Multiple Choice

The owners of Arthouse Inc., a national artist supplies chain, are contemplating purchasing Craftworks Inc, a smaller chain.Arthouse's analysts project that the merger will result in incremental free flows and interest tax savings with a combined present value of $72.52 million, and they have determined that the appropriate discount rate for valuing Craftworks is 16%.Craftworks has 4 million shares outstanding and no debt.Craftworks' current price is $16.25.What is the maximum price per share that Arthouse should offer?

• A) $16.25
• B) $16.97
• C) $17.42
• D) $18.13
• E) $19.00

Journalize proper adjusting entries for payroll and understand their impact on financial statements.

Understand the concept of vertical analysis and its application to income statements and balance sheets.

Recognize the effects on financial statements of omitted adjustments.

Classify items correctly as prepaid expenses, unearned revenues, accrued expenses, and accrued revenues.

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Definitions:

Stable Personality Characteristics

Enduring traits or qualities that define an individual's behavior across different situations and over time.

Deficient

Lacking in some necessary quality or element; not having enough of a specified quality.

Personality Predicts

The notion that individual personality traits can forecast future behaviors, preferences, and life outcomes.

Experiences

Events or occurrences that leave an impression on someone, contributing to their knowledge or understanding.