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(A)company y has inventory worth $200mm and PP&E worth $500mm and no other assets. company X buys company Y for $1B in cash. what happens
(A)company y has inventory worth $200mm and PP&E worth $500mm and no other assets. company X buys company Y for $1B in cash. what happens to the company X balance sheet after the acquisition?
(b) since company X paid $1B for only $700mm of assets, does it necessarily mean that they overpaid for company Y?
why?
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