Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 05, 2024

Company A acquired the net assets of Company B. To compute price for acquisition Company A made the following assumptions: FV net assets: 2550000 JD,

Company A acquired the net assets of Company B. To compute price for acquisition Company A made the following assumptions: FV net assets: 2550000 JD, future earnings 100000 JD, ROA: 6%, discount rate 20%. Compute price for acquisition. Select one: a. 2180000 b. 2285000 C. 2390000 d. 2495000 Clear my choice

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

A certain scientific theory supposes that mistakes in cell division occur according to a Poisson process with rate 2.5 per year, and that an individual dies when 196 such mistakes have occurred....

Answered: 1 week ago

Question

★★★★★

The Cheesecake Factory Incorporated (NASDAQ: CAKE) was started by Evelyn Overton when she sold cheesecakes from her basement in Detroit in the 1940s. Its first restaurant opened in Beverly Hills in...

Answered: 1 week ago

Question

★★★★★

Problem One: Answer Parts 1, 2 & 3 of this Bundle (ASAP, Please) When there are no liens against the goods and no violation of a patent, there is a(n): a. warranty of title and against infringement....

Answered: 1 week ago

Question

★★★★★

What are the differences between the two costing methods, and how do these apply to your company? What are some ABC cost drivers the company might use? How could the costs differ if one method is...

Answered: 1 week ago

Question

★★★★★

The Accidental Bank Robbery Case Study 1. Identify the ethical issues 2. Define possible alternatives 3. Explain the ethics of each alternative 4. What are possible constraints of each alternative?...

Answered: 1 week ago

Question

★★★★★

Design and develop an organizational learning strategy Using the feedback that you received from CEO at the meeting as well as the information you researched and evaluated for your report, create...

Answered: 1 week ago

Question

★★★★★

Fresh Groceries is a chain of supermarkets in Victoria, Australia. The vision of this company is to cater for the various groceries, fresh produce, and deli needs of the Victorian population. To do...

Answered: 1 week ago

Question

★★★★★

FashionValet, a homegrown ecommerce platform in Malaysia, recently caused a stir with the announcement that it will be shutting down. The statement on its website read: "As they say, all good things...

Answered: 1 week ago

Question

★★★★★

1. What is the one-year real rate of return (in %) if you invested in a diversified portfolio of common stocks which produced a 11.45 % nominal return and the rate of inflation for the year was...

Answered: 1 week ago

Previous Question Next Question