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Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $85,000 $17,000 Shares 42,000 17,000 outstanding Per-share values:
Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $85,000 $17,000 Shares 42,000 17,000 outstanding Per-share values: Market $ 57 $ 22 Book $ 19 $ 10 $ Assume that Firm X acquires Firm Y by issuing long-term debt for all the shares outstanding at a merger premium of $8 per share, and that neither firm has any debt before the merger. List the assets of the combined firm assuming the purchase accounting method is used. Assets from X Assets from Y Goodwill Total Assets XY
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