EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202785
Author: DeMarzo
Publisher: VST
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Chapter 29, Problem 10P
Summary Introduction

To discuss: Whether raising managerial ownership stakes would help for improving performance of the firm.

Introduction:

The monetary and non-monetary benefits paid to the employs by the employer for the work done are termed as compensation.

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I mistakenly submitted blurr image please don't answer . comment please i will write values.
Assume that the following statements of financial position are stated and a book value.  Alpha Corporation  Current Assets  $15,000  Current Liabilities  $5,400  Net Fixed Assets  39,000  Long-Term Debt  10,100     Equity  38,500        $54,000     $54,000    Beta Corporation  Current Assets  $3,600  Current Liabilities  $1,400  Net Fixed Assets  6,700  Long-Term Debt  2,100        Equity  6,800     $10,300     $10,300  Suppose the fair market value of Beta’s fixed assets is $9,500 rather than the $6,700 book value shown. Alpha pays $17,300 for Beta and raises the needed funds through an issue of long-term debt. Construct the post-merger statement of financial position now, assuming that the purchase method of accounting is used.
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