If MediaOnes asset book values are approximately equal to their market values, how much goodwill did AT&T pay for MediaOne? Prepare a pro forma income statement and balance sheet for the merged firm for 1998.

2 A Business Analysis Valuation (1).pdt - Adobe Acrobat Reader DC File Edit View Sign Window Help Home Tools Business Analysis Business Analysis Ch11 [TB] Mergers ... . Sign In 296 / 957 118% Search 'Measure La Export PDF Edit PDF Do Create PDF = Comment v 2. On April 22. 1999. MediaOne Group and AT&T agreed to merge. Under the merger, MediaOne Group's shareowners will receive 95 of a share of AT&T common stock and $30.85 in cash for cach share of MediaOnic Group. The total package of cash and stock was valued at $85 per share. MediaOne has 604.4 million shares outstanding. Income Statement December 31, 1998 (in S millions) AT&T MediaOne Revenues Business Services S23,611 Consumer Services 22.885 Wireless Services 5,406 $361 Broadband and Internet Services 2.491 Other and Corporate 1,321 30 Total Revenues 53,223 2.882 Operating Expenses 45,736 3.121 Total Operating Income (Loss) 7,487 (239) Other income, net 1.247 3,368 Earnings (Loss) Before Interest and Taxes 8,734 3,129 Interest expense 427 491 Income from Continuing Operations Before Income 8,307 2,638 Taxes Provision for income taxes 3,072 1.208 Combine Files El Organize Pages De Compress PDF Redact O Protect Fill & Sign Send for Comments More Tools Create, edit and sign PDF coms & grenents Start Free Trial Type here to search W ING 19-27 16/11/2020 2 A Business Analysis Valuation (1).pdt - Adobe Acrobat Reader DC File Edit View Sign Window Help Home Tools Business Analysis Business Analysis ... x Ch11 TB] Mergers ... . Sign In 297 / 957 118% Search 'Measure AT&T Income Statement December 31, 1998 (in $ millions) Income (Loss) from Continuing Operations Income from discontinued operations Gain on sale of discontinued operations Extraordinary loss Net Income MediaOne 1,430 25.208 Export PDF 5,235 10 1,290 137 Edit PDF 333 $26,305 $ 6,398 Do Create PDF = Comment Balance Sheet December 31, 1998 (in $ millions) AT&T MediaOne Combine Files $14.118 26,903 $1.200 4.069 El Organize Pages De Compress PDF Assets Total Current Assets Property, plant and equipment, net of accumulated depreciation Licensing costs, net of accumulated amortization Investinents Prepaid pension costs Goodwill Other assets Total Assets 9.705 Redact 7.948 1,131 2,074 2,205 1.868 $59,550 0 Protect 11.647 1.571 $28,192 Fill & Sign Send for Comments 569 1.045 More Tools Liabilities and Equity Short-term debt Other current liabilities Total Current Liabilities Long-lenn debt Deferred credits and other Minority interest in consolidated subsidiaries Preferred stock Common shareowners' equity Total Liabilities and Equity 1,171 14,271 15,442 5,556 12.921 109 1,614 4.853 6.676 1.099 1.161 12.789 $28,192 Create, edit and sign PDF coms & grenents 25.522 $59,550 Start Free Trial If MediaOne's asset book values are approximately equal to their market values, how W Type here to search 9 ING 19-27 16/11/2020 2 A Business Analysis Valuation (1).pdt - Adobe Acrobat Reader DC File Edit View Sign Window Help Home Tools Business Analysis Business Analysis Ch11 [TB] Mergers ... . Sign In 296 / 957 118% Search 'Measure La Export PDF Edit PDF Do Create PDF = Comment v 2. On April 22. 1999. MediaOne Group and AT&T agreed to merge. Under the merger, MediaOne Group's shareowners will receive 95 of a share of AT&T common stock and $30.85 in cash for cach share of MediaOnic Group. The total package of cash and stock was valued at $85 per share. MediaOne has 604.4 million shares outstanding. Income Statement December 31, 1998 (in S millions) AT&T MediaOne Revenues Business Services S23,611 Consumer Services 22.885 Wireless Services 5,406 $361 Broadband and Internet Services 2.491 Other and Corporate 1,321 30 Total Revenues 53,223 2.882 Operating Expenses 45,736 3.121 Total Operating Income (Loss) 7,487 (239) Other income, net 1.247 3,368 Earnings (Loss) Before Interest and Taxes 8,734 3,129 Interest expense 427 491 Income from Continuing Operations Before Income 8,307 2,638 Taxes Provision for income taxes 3,072 1.208 Combine Files El Organize Pages De Compress PDF Redact O Protect Fill & Sign Send for Comments More Tools Create, edit and sign PDF coms & grenents Start Free Trial Type here to search W ING 19-27 16/11/2020 2 A Business Analysis Valuation (1).pdt - Adobe Acrobat Reader DC File Edit View Sign Window Help Home Tools Business Analysis Business Analysis ... x Ch11 TB] Mergers ... . Sign In 297 / 957 118% Search 'Measure AT&T Income Statement December 31, 1998 (in $ millions) Income (Loss) from Continuing Operations Income from discontinued operations Gain on sale of discontinued operations Extraordinary loss Net Income MediaOne 1,430 25.208 Export PDF 5,235 10 1,290 137 Edit PDF 333 $26,305 $ 6,398 Do Create PDF = Comment Balance Sheet December 31, 1998 (in $ millions) AT&T MediaOne Combine Files $14.118 26,903 $1.200 4.069 El Organize Pages De Compress PDF Assets Total Current Assets Property, plant and equipment, net of accumulated depreciation Licensing costs, net of accumulated amortization Investinents Prepaid pension costs Goodwill Other assets Total Assets 9.705 Redact 7.948 1,131 2,074 2,205 1.868 $59,550 0 Protect 11.647 1.571 $28,192 Fill & Sign Send for Comments 569 1.045 More Tools Liabilities and Equity Short-term debt Other current liabilities Total Current Liabilities Long-lenn debt Deferred credits and other Minority interest in consolidated subsidiaries Preferred stock Common shareowners' equity Total Liabilities and Equity 1,171 14,271 15,442 5,556 12.921 109 1,614 4.853 6.676 1.099 1.161 12.789 $28,192 Create, edit and sign PDF coms & grenents 25.522 $59,550 Start Free Trial If MediaOne's asset book values are approximately equal to their market values, how W Type here to search 9 ING 19-27 16/11/2020