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u slare.Johathan, Inc., has 10,000 shares Jnathan, Inc., has I outstanding with a market value of $48 a share. The acquisition will create $4,000 of

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u slare.Johathan, Inc., has 10,000 shares Jnathan, Inc., has I outstanding with a market value of $48 a share. The acquisition will create $4,000 of synergy. What is the value of Jonathan, Inc. after the acquisition? A) $438,000 B) $409,000 C) $521,000 D) $481,000 E) $556,000 1 1) Firm X has a market value of $8,400 with 120 shares outstanding and a price per share I) of $70. Firm Y has a market value of $2,000 with 100 shares outstanding and a price per share of $20. Firm X is acquiring Firm Y by exchanging 30 of its shares for all 100 of Firm Y's shares. Assume the merger creates $400 of synergy. What will be the value of Firm X's shareholders' stake in the merged firm? A) $9,050 C) $8,640 D) $8,080 E)9,200 B) $8,820 Nadine's Home Fashions has $2.12 million in net working capital. The firm has fixed 12) has no long-term debt. The Home Centre is buying Nadine's for $37.5 million in cash. The with a book value of $31.64 million and a market value of $33.9 million. The the amount of goodwill that The Home Centre will record on its balance sheet as a result of this acquisition? A) $1.48 million B) $4.14 million C) $5.86 million acquisition will be recorded using the purchase accounting method. What is D) S3.74 million E) S3.34 million A-3

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