contestada

Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $ 86,000 $ 17,500 Shares outstanding 43,000 18,000 Per-share values: Market $ 58 $ 14 Book $ 18 $ 9 Assume that Firm X acquires Firm Y by issuing long-term debt for all the shares outstanding at a merger premium of $7 per share, and that neither firm has any debt before the merger. List the assets of the combined firm assuming the purchase accounting method is used.

Respuesta :

Answer:

Total assets X Y   1,152,000  

Explanation:

Since both the firms do not have any liability -Book value of equity  = Carrying value of assets  

Goodwill = Net consideration - Market Value of Assets of Y

Assets from X 18 x 43000              774000  

Assets From y 14 x 18000              252000  

Goodwill (18000 x (14+7)) - 252000 =      126000  

Total assets X Y                               1152000  

Otras preguntas