M&A Merger Models Exam Questions With Correct Solutions All Verified By An Expert A+ Graded
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Course
Wall Street Prep
Institution
Wall Street Prep
How can you think about calculating combined equity value? - ANS if no Stock is used, Combined Equity Value = Company A's Equity Value.
If it's a 100% Stock deal, Combined Equity Value = Company A's Equity Value + Company B's Purchase Equity Value.
How can you think about calculating combine...
Mergers & Acquisitions (M&A)
Modeling Exam Questions With
Correct Solutions All Verified By An
Expert A+ Graded
, 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 - ANS 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
K
takeover premium in dollar terms (Round to the closest dollar).
ABC Co. Stock Price
Given the data in the above table, calculate equity value per share of this hypothetical
ST
company. (Round to 2 decimal points)
Shares outstanding
150,000
Cash
120,000
Tax Rate
6%
Discount Rate
2%
Enterprise Value
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