Who is the investor? Why does it matter? Assume that we have an acquisition. But, we don't yet know who the investor is. Here are the facts: Company A Company B Issued stock valued at $72.0 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? b. Now, assume the following facts about the financial profiles of these two companies. If Company A is deemed If Company B is deemed Fair Values to be the Subsidiary to be the Subsidiary Tangible net assets $36.0 billion $15.0 billion Identifiable intangible assets 18.0 billion 30.0 billion Total $54.0 billion $45.0 billion Determine the fair values of the identifiable net assets (and goodwill, if any) assuming the transaction qualifies as a business combination and Company A is the accounting acquirer. Then, determine the fair values of the identifiable net assets (and goodwill, if any) assuming the transaction qualifies as a business combination and Company B is the accounting acquirer. Enter answers in billions If Company A is If Company B is the accounting the accounting ($ billions) acquirer acquirer Identifiable net assets $ Goodwill $