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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

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.

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