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The total after-tax pro-forma adjustment to Amazon's net earnings is expected to be: ($44,442) ($31,109) ($22,711) $57,774

The total after-tax pro-forma adjustment to Amazon's net earnings is expected to be: ($44,442) ($31,109) ($22,711) $57,774

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Acquisition of Facebook by Amazon PP&E, Goodwill and Other Intangibles Assumptions Total Book Value of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property S71,505 $766,981 71.50% FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property 28.50% Average Amortization Period (Years) 13.5 Years Debt Assumptions Debt issued for acquisition of Facebook $187,038 Interest on New Debt 4.0% Term of New Debt 10 Years New Debt Financing Fees 0.5% Other Assumptions Other Transaction Costs $20 Efective Tax Rate 30.0% Amazon Net Earnings Facebook Net Eamings $23,688 S30,133 15 The total after-tax pro-forma adjustment to Amazon's net earnings is expected to be: ($44,442) ($31,109) ($22,711) $57,774
Transcribed Image Text:Acquisition of Facebook by Amazon PP&E, Goodwill and Other Intangibles Assumptions Total Book Value of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Other Intangibles FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property S71,505 $766,981 71.50% FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property 28.50% Average Amortization Period (Years) 13.5 Years Debt Assumptions Debt issued for acquisition of Facebook $187,038 Interest on New Debt 4.0% Term of New Debt 10 Years New Debt Financing Fees 0.5% Other Assumptions Other Transaction Costs $20 Efective Tax Rate 30.0% Amazon Net Earnings Facebook Net Eamings $23,688 S30,133 15 The total after-tax pro-forma adjustment to Amazon's net earnings is expected to be: ($44,442) ($31,109) ($22,711) $57,774
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