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Vani will purchase 100% of Graham. The expected completion date is January 1st. It will be an all equity deal. Synergies are expected at
Vani will purchase 100% of Graham. The expected completion date is January 1st. It will be an all equity deal. Synergies are expected at 20% of Graham's SG&A per annum (evenly throughout the year from day 1 post deal). The marginal tax rate is 30%. Deal goodwill of 400 will be created. Vani reports to the end of December. Calculate consolidated net income using the standalone forecasts below for the year to December. Round your answer to 1 decimal place. Sales COGS Gross profit SG&A Operating profit Net interest expense Profit before tax Tax expense Net income Answer: Vani Graham 30,676.2 13,416.0 18,404.0 8,316.2 12,272.2 5,099.8 7,671.2 4,024.8 4,601.0 1,075.0 258.0 64.5 4,343.0 1,010.5 1,479.2 301.0 2,863.80 709.5
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