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M&A Modeling Exam From Wall Street Prep [Update ] Q&A
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M&A Modeling Exam From Wall Street Prep [Update ] 20 Questions&Answers
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Review:M&AModelingRetakeExam, Question 3
The intangible assets of a company getting acquired were written up for book purposes from a pre-deal book value of $50m to
$60m but NOT for tax purposes, where the tax basis remained $50m. Assume that targetʼs definite lived intangible assets are amortized on a
straight-line basis over 15 years for both book and tax purposes. Also assume that the acquirer has a tax rate of 40%.
What is the impact on goodwill as a result of the book write-up and no tax step up?
No impact on goodwill Goodwill
is lower by $6m Goodwill is higher
by $6m Goodwill is higher by $4m
Question 4
It is January 1, 2017. Glocabe Networks is contemplating the acquisition of competitor Jupiter Networks by issuing stock to purchase target
shares (stock purchase). The following details are available:
, -$0.24
($ in millions except per share data):
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