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Company A acquired the net assets of Company B. To compute price for acquisition Company A made the following assumptions: FV assets: 5400000 JD, FV
Company A acquired the net assets of Company B. To compute price for acquisition Company A made the following assumptions: FV assets: 5400000 JD, FV liabilities: 3500000 JD, future earnings 320000 JD, ROA: 14%, discount rate 15%. Compute price for acquisition. Select one: a. 2560000 b. 2425000 c. 2337500 d. 2260000
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