h) What discount rate was used to calculate the present value of future cash flows? i) Who prepared the valuation and fairness opinion letter(s)? What did the fairness opinion letter(s) say about the proposed combination, exchange ratio, and the asking price? k) What accounting adjustments were made to the target company's assets and liabilities presented in the pro forma financial information? I) Why is pro forma information presented in merger proxy statements (DEF 14A) and registration statements (S-4)? 14. Given the purchase price and accounting adjustments to the target company's net assets, prepare the journal entry the acquiring company would have made to record the business combination. 15. Actual Financial Results To Date: a) Calculate profitability ratio before and after the acquisition date for the consolidated financial statements. What type of financial results has the combined company achieved since the completion of the business combination? Have the financial results greater than expected, less than expected? Has there been any impairment of goodwill since the completion of the business combination? If so, what were the amount and the reasons for impairment loss? 16. In your opinion, is the business combination successful or not, Give your reason for your answer (Hint: You can perform ratio analysis or quote from newspaper o any investor opinion)10. From the information available. what are the nancial reporting implications of the mergerlaoquisition? a) Are pro tonne nancial statements presented? [1) What amount of goodwill is recorded? 1 1 . Synergies. (A) What types of synergies were described in the proposed merger? 12. Proposed purchased price and fees. (A) What is the amount of direct acquisition cost? List the components of the direct acquisition costs. (3) What is the amount stock issuance costs or any other additional costs? 13. Valuation: a] What is the amount of exchange ratio? b] What valuation methods were used to determine the purchase price? c) What valuation method was used to value the target company? If the discounted cash ow (DC F) method was used to value the business combination. what amount was assigned to tenninai vdue? d] if DCF analysis was used. what was the length of forecast period? What were the years? e] Valuation of synergies. f) What was the estimated standalone 1value of the target company? g] What was the estimated standalone value plus expected synergies resulting from cost savings and revenue increases