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Denver Company provides gardening and landscaping design services. In 2018, the company was considering to acquire Boulder Company, a well-established firm in the same industry.
Denver Company provides gardening and landscaping design services. In 2018, the company was considering to acquire Boulder Company, a well-established firm in the same industry. Boulder's fair market value was estimated at $750 million. The financial advisor suggested an asking price of $850 million Denver company was assessing the financing strategy of using: $550 million in debt and $460 million in cash froma private equity company. The balance sheets of the two companies are given below. Balance sheets Current assets Goodwill Fixed assets Total assets Current liabilities Long-term debt Shareholder equity Total liabilities and equity Denver Co. Boulder Co. Acquirer 135 Target 250 25 0 50 40 210 290 95 65 65 25 50 200 210 290 Question: Complete the combined firm's balance sheet and determine the goodwill and acquisition premium to Denver company
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