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FYI: THIS IS A NEW SET OF PROBLEM WITH A NEW SET OF DATA... PLEASE DO NOT PROVIDE OLD ANSWERS Consider the following premerger information
FYI: THIS IS A NEW SET OF PROBLEM WITH A NEW SET OF DATA... PLEASE DO NOT PROVIDE OLD ANSWERS
Consider the following premerger information about Firm X and Firm Y:
Firm X | Firm Y | |||||
Total earnings | $ | 90,000 | $ | 19,500 | ||
Shares outstanding | 47,000 | 12,000 | ||||
Per-share values: | ||||||
Market | $ | 47 | $ | 18 | ||
Book | $ | 16 | $ | 5 | ||
Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $5 per share, and that neither firm has any debt before or after the merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. (Do not round intermediate calculations.)
Assets from X | $ | |
Assets from Y | ||
Goodwill | ||
Total Assets XY | $ | |
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