Consider the Following Premerger Information About Firm X and Firm

question 84

Multiple Choice

Consider the following premerger information about Firm X and Firm Y: Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $3 per share.Also assume that neither firm has any debt before or after the merger.What is the value of the total equity of the combined firm,XY,if the purchase method of accounting is used?

• A)$1,274,000
• B)$1,316,000
• C)$1,352,000
• D)$1,422,000
• E)$1,427,000

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Definitions:

Sequence

A specific order or arrangement in which operations, events, or activities follow each other.

Johnson's Rule

A sequencing rule used to minimize job or project completion time by ordering tasks based on the shortest processing time at a given workstation.

Makespan

The total time required to complete a set of tasks or jobs from start to finish in production or project scheduling.

Body Work Time

refers to the time spent repairing or modifying the body of vehicles in automotive repair.