Who is the investor? Why does it matter? Assume that we have an acquisition. But, we dont yet know who the investor is. Here are the facts: Company A Company B Issued stock valued at $12.0 billion Exchanged all of its stock for the stock issued by Company A Can elect one-half of the Board of Directors Can elect one-half of the Board of Directors Its Chairman will succeed the Chairman from Company B in 3 years Its Chairman will become Chairman of the new entity for the first 3 years Its CEO will become CEO of the combined company Its CFO will become CFO of the combined company a. Which company is the acquirer in your opinion? Answer Company A b. Now, assume the following facts about the financial profiles of these two companies. Fair Values If Company A is deemed to be the Subsidiary If Company B is deemed to be the Subsidiary Tangible net assets $6.0 billion $2.5 billion Identifiable intangible assets 3.0 billion 5.0 billion Total $9.0 billion $7.5 billion Determine the fair values of the identifiable net assets (and goodwill, if any) assuming the transaction qualifies as a business combination and Company A is the accounting acquirer. Then, determine the fair values of the identifiable net assets (and goodwill, if any) assuming the transaction qualifies as a business combination and Company B is the accounting acquirer. Enter answers in billions ($ billions) If Company A is the accounting acquirer If Company B is the accounting acquirer Identifiable net assets Answer 0 Answer 0 Goodwill Answer 0 Answer 0