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)).
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