Wall Street Prep Premium Exam With Latest Update
to calculate interest expense in the future, you should do which of the following - ANSWER-apply a weighted average interest rate times the average debt balance over the course of the year
Under recapitalization accounting - ANSWER-The purchase pri...
to calculate interest expense in the future, you should do which of the following -
✔✔✔ANSWER-apply a weighted average interest rate times the average debt
balance over the course of the year
Under recapitalization accounting - ✔✔✔ANSWER-The purchase price is
reflected as a reduction to equity
, Use the following information to answer the question below:
• Acquisition takes place on July 1, 2013
• Acquirer FYE - June 30
• Target FYE - December 31
• Acquirer expected EPS for FYE June 2014 is $2.40
• Target consensus EPS for FYE Dec 2013 is $1.12
• Target consensus EPS for FYE Dec 2014 is $1.78
Assuming 360 days in a year for simplicity, calculate target EPS adjusted to
acquirer FYE in the transaction year
(FYE June 2014) - ✔✔✔ANSWER-$1.45
• Acquirer purchases 100% of target by issuing additional stock to purchase target
shares
• No premium is offered to the current target share price
• Acquirer share price at announcement is $30
• Target share price at announcement is $50
• Acquirer EPS next year is $3.00
• Target EPS next year is $2.00
• Acquirer has 4 thousand shares outstanding
• Target has 2 thousand shares outstanding
Assuming a 40% tax rate, what are the necessary pre-tax synergies needed to
break-even? - ✔✔✔ANSWER-
• Acquirer purchases 100% of target by issuing additional stock to purchase target
shares
• No premium is offered to the current target share price
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NURSING2EXAM. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.