9. At the beginning of the year, Parent Company purchased all 500,000 shares of Sub Incorporated for $15 per share. Just before the acquisition date, Sub's balance sheet reported net assets of $6 million. Parent determined the fair value of Sub's property and equipment was $1 million higher than reported by Sub. What amount of goodwill should Parent report as a result of its acquisition of Sub? Show your analysis and computations (25) 10. An analyst has compiled the following information for a company's latest fiscal year: millions Net income 39.0 Depreciation 15.0 Interest expense 6.0 Tax expense 13.0 Pretax income 52.0 In the same period, the company also purchased machinery for $10 million. Cash from operations (CFO) for the period was $14.5 million. The company reports under US GAAP. Compute the free cash flow to the firm (FCFF) (3) 9. At the beginning of the year, Parent Company purchased all 500,000 shares of Sub Incorporated for $15 per share. Just before the acquisition date, Sub's balance sheet reported net assets of $6 million. Parent determined the fair value of Sub's property and equipment was $1 million higher than reported by Sub. What amount of goodwill should Parent report as a result of its acquisition of Sub? Show your analysis and computations (25) 10. An analyst has compiled the following information for a company's latest fiscal year: millions Net income 39.0 Depreciation 15.0 Interest expense 6.0 Tax expense 13.0 Pretax income 52.0 In the same period, the company also purchased machinery for $10 million. Cash from operations (CFO) for the period was $14.5 million. The company reports under US GAAP. Compute the free cash flow to the firm (FCFF) (3)