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7.13400 (15 points) (1) Apple is buying $100 worth of new iPad factories with debt on December 31, 2020. Assume the debt is high-yield so

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7.13400 (15 points) (1) Apple is buying $100 worth of new iPad factories with debt on December 31, 2020. Assume the debt is high-yield so no principal is paid off, and assume an interest rate of 5%. Also assume the factories depreciate at a rate of 10% per year and the tax rate is 20%. How are the following items affected at 2021 or on 12-31-2021? Net Income: Operating Cash Flows: Total Assets: (2) Let's say Apple is buying a company for $1 billion with half-cash and half-debt, and had a $10 million asset write-down and a tax rate of 21%. In addition, the seller has total book assets of $200 million, total liabilities of $150 million, and shareholders' equity of $50 million. Calculate the amounts of following items generated from the above transaction. Goodwill: Deferred Tax Assets (Liabilities)

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