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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In your own understanding, please answer the following: 1. What are the importance of knowing, analyzing and assessing the financial statement in the decision making of internal and external users in the organization? 2. Explain briefly how do you understand the concept of Cost of Good Sold.
B. In deciding a transfer pricing method, advise management on: i. negotiated transfer pricing ii. market-based transfer pricing AT
In your point of view where does commodities fit or suitable in our lives. Explain
What is the relationship between profit and ethics?
How can we identify the sponsor's costs and quantify them?
Explain economic exchanges that take place among producers, consumers, and resource owners.
What is "constructive receipt doctrine? Discuss What is "economic benefit doctrine? Discuss
Does the Profitability Analysis play an important role in decision making? How?
In examining financial statements, financial analysts often write off goodwill immediately. Comment on this procedure.
Explain the objectives of transfer pricing and describe the advantages anddisadvantages of various transfer pricing alternatives.
How do donor restrictions affect net assets?
What are the Finance disciplines that contribute to strategy development? And how it providing financial analysis, budgeting, and resource allocation expertise?