Identify and explain the type of acquisition that would occur if Guda acquires Blue Moon.
Essay
Food Depot Ltd, (FDL) is a privately-held company that provides catering services to airlines and operates several restaurant chains including fast food, casual dining, and fine dining restaurants, FDL has been profitable in recent years and has a very strong cash position. FDL's newest division. Food_TO-Go is an online meal ordering and delivery platform acquired by FDL two year ago.
In 20X7, sales for the entire company were $1 billion, with 50% of the business coming from the Airline Catering division. FDL is the country 's leading airline catering services provider and control 60% of the market share. However, the outlook of the airline catering industry is gloomy. The compound annual growth rate of the industry for the past five years was only 0.5% as airline networks have increasingly dropped catering on short domestic flights.
The Food-To-division only contribution 5% of FDL's total sales in 20X7 and is far behind in competing for marketing for market share of the online meal ordering and delivery industry, it is estimated that Food-To-Go's sales were only 20% of the industry leader's sales. However, the outlook for the online meal ordering and delivery services industry is bright. The compound annual growth rate of the industry since it started three years ago was 50%. It is estimated the rapid growth of the industry will continue in the foreseeable future.
Susan Willey, the head of Food-To-Go, does not agree that the Airline Catering division is the best-performing division in the company. Wiley argues that ber division bad the highest ROI in 20X7, and it deserves more capital finding. FDL's requested rate of return is 12%. The selected financial data for the Airline Catering division and Food-To-Go division in 20X7 are as follow (in $ millions)

Below is the income statement and balance sheet for a retail corporation.

What is the corporation's debt to total capital in year 2?

• A. 71%
• B. 6%
• C. 41%
• D. 19%

A foreign subsidiary of a U S company has an intercompany loan from the parent company. Which one of the following statements about the subsidiary's functional currency is true?

• A. It is the U S dollar because the subsidiary has an intercompany loan from the parent company
• B. It should be the U S dollar if the local currency is hyper inflated
• C. It should be determined by the management of the U.S. Company
• D. It is the US dollar because the parent company is in the US

Risk maps are used in companies' enterprise risk management system because risk maps

• A. compares the impact of a risk and the likelihood of occurrence to provide a qualitative assessment of the risk
• B. provide a quantitative tool that measures the probability of occurrence and the potential impact to calculate a potential loses
• C. rank risks Based on the potential loss that could occur it a risk were to materialize
• D. are a generic set of risks for the company's industry that can then be used as a foundation for further risk-identification techniques to specify the risks relevant for the company.

A retail company sells numerous products m its one department store. The income statements tot two of these products are shown below

After reviewing the income statements, the president is considering drooping one or both products. Which produces), if any should the company discontinue?

• A. Product B only
• B. Neither Product A nor Product B
• C. Product A only
• D. Both Product A and Product B