Today, Company "A" purchases 100% of Company B Common Stock and assumes all of the outstanding Company B Liabilities. Immediately Before the acquisition, Company B had reported the following Balance Sheet Totals: Total Assets = $9,200 Total Liabilities = $3,800 Total Equity = $5,400 Immediately after the Acquisition, Company A had to consolidate Company B into its financial books. This involves the Purchase Price Allocation problem. Here is the information you have to work with: Company A recognized $4,400 Goodwill in the acquisition of Company B. The Liabilities of Company B were re-valued to current fair value at $4,700 The Acquired Plant Property and Equipment was valued at $7,800 fair market value Acquired Research and Development as well as Patents were valued at $1,200 Compute the Purchase Price that Company A paid for Company B in this acquisition. Do not include the dollar sign. There is no partial credit for this problem. 4 points QUESTION 23 Today, Company "A" purchases 100% of Company B Common Stock and assumes all of the outstanding Company B Liabilities. Immediately Before the acquisition, Company B had reported the following Balance Sheet Totals and supplemental information: Physical (non-financial)Liabilities = $42,680,000 Face Value of Outstanding Bond Liabilities =$640,000,000 Time to Maturity for Outstanding Bonds = 18 years Annual Coupon Rate for Bonds with annual coupon payments = 5% Cost of Debt for Company B = 4% Cost of Debt for Company A = 6.5% Required: Compute the Value of the Bonds that would be shown on the Balance Sheet of Company B immediately before the acquisition. Do not use the dollar sign and round to the nearest whole dollar. 4 points QUESTION 24 Today, Company "A" purchases 100% of Company B Common Stock and assumes all of the outstanding Company B Liabilities. Immediately Before the acquisition, Company B had reported the following Balance Sheet Totals and supplemental information: Physical (non-financial)Liabilities = $42,680,000 Face Value of Outstanding Bond Liabilities =$640,000,000 Time to Maturity for Outstanding Bonds = 18 years Annual Coupon Rate for Bonds with annual coupon payments = 5% Cost of Debt for Company B = 4% Cost of Debt for Company A = 6.5% Required: Compute the Value of the Company B Bonds that would flow into the Company A Balance Sheet immediately after the acquisition. Do not use the dollar sign and round to the nearest whole dollar. 4 points QUESTION 25 Today, Company "A" purchases 100% of Company B Common Stock and assumes all of the outstanding Company B Liabilities. Immediately Before the acquisition, Company B had reported the following Balance Sheet Totals and supplemental information: Physical (non-financial)Liabilities = $42,680,000 Face Value of Outstanding Bond Liabilities =$640,000,000 Time to Maturity for Outstanding Bonds = 18 years Annual Coupon Rate for Bonds with annual coupon payments = 5% Cost of Debt for Company B = 4% Cost of Debt for Company A = 6.5% Required: Assume the Bonds were revalued at $600,000,000 by Company B. Compute the total value of the Company B liabilities that would flow into the Company A Balance Sheet immediately after the acquisition.