What is the correct formula for Goodwill?
A. Market value of acquirer - net identifiable assets of target
B. Price paid - fair market value of net identifiable assets of target
C. Market value of acquirer - fair market value of target
D. Book value of target's equity + Adjustments - ANSWER B...
A. Market value of acquirer - net identifiable assets of target
B. Price paid - fair market value of net identifiable assets of target
C. Market value of acquirer - fair market value of target
D. Book value of target's equity + Adjustments - ANSWER B. Price paid - fair market value of net
identifiable assets of target
ABC Co. is considering an acquisition of XYZ Co. for a cash offer that values XYZ at 20% higher than its
current market capitalization. Given the above data, calculate the takeover premium in dollar terms
(Round to the closest dollar).
ABC Co. Stock Price
$26.00
XYZ Co. Stock Price
$10.00
ABC Co. Cash
$2,000,000
XYZ Co. Cash
$1,500,000
ABC Co. Shares Outstanding
300,000
XYZ Co. Shares Outstanding
, 150,000
A. $400,000
B. $250,000
C. $300,000
D. $315,000 - ANSWER C. $300,000
Given the data in the above table, calculate equity value per share of this hypothetical company.
(Round to 2 decimal points)
Shares outstanding
150,000
Cash
120,000
Tax Rate
6%
Discount Rate
2%
Enterprise Value
300,000
Debt
90,000
Perpetual Growth Rate
5%
A. $2.20
B. $2.50
C. $3.00
D. $2.00 - ANSWER A. $2.20
Given the above screenshot, what is the correct closing cash balance in cell O29? (Rounding to the
closest whole number) (SAVED IN ICLOUD (OR DESKTOP B/C STORAGE FULL) AS "CBCA M AND A
MODELING QUALIFIED ASSESSMENT Q4 SCREENSHOT" ON DEC. 28TH, 2022)).
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 papersbyjol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
