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3) Using the purchase price and deal structure determined in the previous questions, as well as the following assumptions, complete the questions below regarding goodwill
3) Using the purchase price and deal structure determined in the previous questions, as well as the following assumptions, complete the questions below regarding goodwill created, asset write-ups, and deferred tax liability ($ in millions) Assumptions ValueCo Net Identifiable Assets Allocation of Purchase Price Premium to Tangible Assets Allocation of Purchase Price Premium to Intangible Assets BuyerCo Marginal Tax Rate $2,500.0 15.0% 10.0% 38.0% ($ in millions) Goodwill Calculation Equity Purchase Price Less: ValueCo Net Identifiable Assets Total Allocable Purchase Premium Allocation % Less: Tangible Asset Write-Up Less: Intangible Asset Write-Up Plus: Deferred Tax Liability Goodwill created in Transaction a. Calculate the total allocable purchase price premium b. Calculate the tangible asset write-up amount c. Calculate the intangible asset write-up amount d. Calculate the deferred tax liability e. Determine the goodwill created in the transaction 3) Using the purchase price and deal structure determined in the previous questions, as well as the following assumptions, complete the questions below regarding goodwill created, asset write-ups, and deferred tax liability ($ in millions) Assumptions ValueCo Net Identifiable Assets Allocation of Purchase Price Premium to Tangible Assets Allocation of Purchase Price Premium to Intangible Assets BuyerCo Marginal Tax Rate $2,500.0 15.0% 10.0% 38.0% ($ in millions) Goodwill Calculation Equity Purchase Price Less: ValueCo Net Identifiable Assets Total Allocable Purchase Premium Allocation % Less: Tangible Asset Write-Up Less: Intangible Asset Write-Up Plus: Deferred Tax Liability Goodwill created in Transaction a. Calculate the total allocable purchase price premium b. Calculate the tangible asset write-up amount c. Calculate the intangible asset write-up amount d. Calculate the deferred tax liability e. Determine the goodwill created in the transaction
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