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A target firm has 7 million shares outstanding at a price of $20 per share. The acquiring firm offers a 10% takeover premium. The market
A target firm has 7 million shares outstanding at a price of $20 per share. The acquiring firm offers a 10% takeover premium. The market value of the target's fixed assets is $125 million and it has $20 million in current assets. If the firm has $40 million in liabilities, what is its value for goodwill?
| A. | 35 Million |
| B. | 29 Million |
| C. | 49 Million |
| D. | 55 Million |
| E. | 9 Million |
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
