Nelson's Interiors has $2.13 million in net working capital. The firm has fixed assets with a book value of $23.23 million and a market value of $26.16 million. The firm has no long-term debt. The Home Centre is buying Nelson's Interiors for $29.5 million in cash. The acquisition will be recorded using the purchase accounting metho

What is the amount of goodwill that The Home Centre will record on its balance sheet as a result of this acquisition?

: 4G = Chegg chegg.com o The Next Five Questions.)... Multiple Part: (The following information applies to the next five questions.) Magiclean Corporation is considering an acquisition of Dustvac Company. Dustvac has a capital structure of 60% debt and 40% equity, with a current book value of $10 million in assets. Dustvac's pre-merger beta is 1.36 and is not likely to be altered as a result of the proposed merger. Magiclean's pre-merger beta is 1.02, and both it and Dustya face a 40% tax rate. Magiclean's capital structure is 50% debt and 50% equity, and it has $24 million in total assets. The net cash flows from Dustvac available to Magiclean's stockholders are estimated at $4.0 million for each of the next three years and a terminal value of $23.0 million in Year 4. Additionally, new debt issued by the combined firm would yield 10% after-tax, and the cost of equity is estimated at 12.59%. Currently, the risk-free rate is 6.0% and the expected market return is 14.88%. 1) What is the merged firm's WACC? 2) What is the merged firm's new beta? 3) What is the appropriate discount rate Magiclean should use to discount the equity cash flows from Dustvac?