Investment bank Canaccord's Think Childcare (TNK) initiation of coverage states: TNK reported an impressive set of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Investment bank Canaccord's Think Childcare (TNK) initiation of coverage states: "TNK reported an impressive set of results following its first full year as a listed entity. Revenue of $46.5m was 7% above prospectus forecasts of $43.4m; however, the company acquired two centres during the year. On a like-for-like basis (backing out the acquisitions), revenue still came in 5% above the prospectus forecasts, at $45.5m." Which of the following statements is NOT correct? It's important to assess how much performance exceeded forecasts on a like-for-like basis because: Hint: A like-for-like basis is used to measure sales growth adjusted for new or divested business. Select one: O a. Expansion through acquisitions is typically more costly than organic expansion. O b. Successful word-of-mouth customer recommendations and advertising are less risky and more sustainable sources of growth compared to acquisitions. O c. Organic and acquisition-led growth both typically require extra external funding. O d. Acquisitions typically require a takeover premium which runs the risk of making them negative NPV investments. Investment bank Canaccord's Think Childcare (TNK) initiation of coverage states: "TNK reported an impressive set of results following its first full year as a listed entity. Revenue of $46.5m was 7% above prospectus forecasts of $43.4m; however, the company acquired two centres during the year. On a like-for-like basis (backing out the acquisitions), revenue still came in 5% above the prospectus forecasts, at $45.5m." Which of the following statements is NOT correct? It's important to assess how much performance exceeded forecasts on a like-for-like basis because: Hint: A like-for-like basis is used to measure sales growth adjusted for new or divested business. Select one: O a. Expansion through acquisitions is typically more costly than organic expansion. O b. Successful word-of-mouth customer recommendations and advertising are less risky and more sustainable sources of growth compared to acquisitions. O c. Organic and acquisition-led growth both typically require extra external funding. O d. Acquisitions typically require a takeover premium which runs the risk of making them negative NPV investments.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below 1 The statement that is NOT correct bas... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these accounting questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Using the following information on Rockboro Case please answer the following Question: What are the problems here, and what do you recommend and what are the implications of different payout levels...
-
The binding constants for Mg2+ and Ca2+ are too similar for the species to be determined independently by titration without proper treatment. When a dilute NaOH solution is added to the tap water...
-
A quality control engineer monitors the quality of a cylinder production line. He regularly selects a sample of 5 units and measures the diameters. The specification requires the diameter to be 6...
-
You have conducted recent tests measuring peak pollution levels in various parts of the city. The average peak pollution readings for a sample of 21 days at each of three city locations are given in...
-
Which of the following changes would not produce a larger eddy current in the metal? A. Increasing the frequency of the oscillating current in the transmitter coil B. Increasing the magnitude of the...
-
Included in the December 31, 2009 Jacobi Company balance sheet was the following stockholders equity section: The company engaged in the following stock transactions during 2010: Jan. 4 Paid the...
-
What argument can be used to tell the text area what to do with a line of text when it reaches the right edge of the visible area?
-
SEC regulation, tax and working papers. Marshall and Wyatt, CPA, have been for several years the independent auditors of Interstate LDC Land Development Corporation of New Orleans, Louisiana. During...
-
A company has the following inventory information and uses the periodic system: May 1 Beginning Inventory 18 units at $1 each. Purchase May 4 11 units at $2 each May 7 Sale 21 units The company uses...
-
a) An emerging data and information management infrastructure in recent years has been "blockchain. Identify and discuss key blockchain components and how blockchain is addressing challenges of...
-
Describe the concept of emotional labour and explain how it can affect the relationships of people in the service industry for tma.
-
Nawab & Ahmad Co. are in toys business. Their individual investments in the business on 1 January 2016 were: Nawab RM80,000; Ahmad RM40,000. Interest should be allowed on capital at 7 percent per...
-
Consider the following AR model for the variable yt: Yt = 1+0.75yt-1 + Et where Et is a white noise process. We know that the variable yt is stationary. Then we can compute that E(yt) is equal to:...
-
Study the social networks market in the US over the last 10 years. Discuss its competition characteristics using recent data (i.e., market share, customers, profits...) Which type of competition is...
-
The dwarf planet Pluto has an elliptical orbit with a semi-major axis of 5.91 x 1012 m and eccentricity 0.249. Part A Calculate Pluto's orbital period. Express your answer in seconds. ? T = Part B...
-
Tell whether the angles or sides are corresponding angles, corresponding sides, or neither. AC and JK
-
The following is a selected list of ratios comparing Long Inc. and Circular Corporation for a recent year: Instructions (a) Classify each of the above ratios as a liquidity (L), solvency (S), or...
-
On January 1, 2017, Power Ltd. issued bonds with a maturity value of $5 million for $4,797,000, when the market rate of interest was 8%. The bonds have a contractual interest rate of 7% and mature on...
-
Rod and Dall are partners in R&D LLP. The partnership reports profit of $75,000. There is no partner- ship agreement. (a) Prepare the entry to distribute the profit between the partners. (b) Prepare...
-
Determine the equivalent resistance \(R_{\text {eq }}\) for the circuit shown in Figure 6.9. FIGURE 6.9 Problem 2. +O V www R ww R3
-
Determine the equivalent resistance \(R_{\text {eq }}\) for the circuit shown in Figure 6.8. FIGURE 6.8 Problem 1. W R1 ev
-
Determine the equivalent resistance \(R_{\mathrm{eq}}\) for the circuit shown in Figure 6.11. Assume that all resistors have the same resistance of \(R\). FIGURE 6.11 Problem 4. R W R3 BA w R ww
Study smarter with the SolutionInn App