Problem #4 Assuming the following transaction details for an acquisition, calculate the amount of goodwill that will be recorded on the transaction: Purchase consideration given = 45.5 million shares issued, plus $26,000,000 of cash Share price on the closing date of the transaction = $12.30 per share The target company had a cash balance of $12,800,000 on the closing date of the transaction. The fair value of non-cash assets acquired in the transaction = $820 million The fair value of the target company's liabilities acquired = $388 million
Problem #4 Assuming the following transaction details for an acquisition, calculate the amount of goodwill that will be recorded on the transaction: Purchase consideration given = 45.5 million shares issued, plus $26,000,000 of cash Share price on the closing date of the transaction = $12.30 per share The target company had a cash balance of $12,800,000 on the closing date of the transaction. The fair value of non-cash assets acquired in the transaction = $820 million The fair value of the target company's liabilities acquired = $388 million
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Problem #4
Assuming the following transaction details for an acquisition, calculate the amount of goodwill that will be recorded on the transaction:
Purchase consideration given = 45.5 million shares issued, plus $26,000,000 of cash
Share price on the closing date of the transaction = $12.30 per share
The target company had a cash balance of $12,800,000 on the closing date of the transaction.
The fair value of non-cash assets acquired in the transaction = $820 million
The fair value of the target company's liabilities acquired = $388 million
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