An acquirer is in the process of buying 100% of a target, entirely funded by equity.

The closing date is expected to be August 31st of the fiscal year and the fiscal year end is January 31st for both companies.

Below are the forecast income statements for the fiscal year to January 31st.

Calculate forecast consolidated net income for the year ending 31 January, assuming no synergies.

The marginal tax rate is 30.0% for both companies.

a) 816.67

b) 962.50

c) 883.33

d) 1050.00

Acquirer Target Tax expense 200.0 125.0 Net income 650.0 400.0