Acquiring firm goodwill account

Assignment Help Finance Basics
Reference no: EM132354664

Suppose an acquiring firm pays $100 million for a target firm, and the target's assets have a book value of $70 million and an estimated replacement value of $80 million. What amount would be allocated to the acquiring firm's goodwill account?

Reference no: EM132354664

Questions Cloud

What were annual sales for stacky in 2017 : At the end of 2017, Stacky Corp. had $500,000 in liabilities and a debt-to-assets ratio of 0.5. For 2017, Stacky had an asset turnover of 3.0.
Evaluate the current methods in organizational behavior : Evaluate the current methods in Organizational Behavior. Identify how the field and current research might help improve quality and productivity in organization
Compare the flexible budget with the actual expenditures : Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department.
What is the market value and book value of the company : Look at the profiles (financial statements for 2018) of each on yahoo finance and discuss the followings (you need to calculate these values yourself).
Acquiring firm goodwill account : What amount would be allocated to the acquiring firm's goodwill account?
Personal purchase or small business investment venture : Give an example of a personal purchase or a small business investment venture. Do you think that you made a good investment of your hard-earned capital?
Find capital changes and consolidated financial statements : Respond to the following in a minimum of 250 words: This week focuses on criteria for calculating capital changes and consolidated financial statements.
Discuss which bond will trade at a higher price in market : Discuss which bond will trade at a higher price in the market Discuss what happens to the market price of each bond if the interest rates in the economy go up.
Sharepoint development - master calendar control : Need master calendar control in its top level site which will consolidate all the individual events from all calendar apps used by any user in sales department

Reviews

Write a Review

Finance Basics Questions & Answers

  Treatment influences participants

You should use correlated designs (rather than independent designs) in all of the following situations EXCEPT:

  What was the net income of the brite partnership

Arthur Plack, a partner in the Brite Partnership, has a 30 percent share in partnership profits and losses. What was the net income of the Brite Partnership for 2013.

  Discuss the external transactions for terapin company

Terapin Company engages in the following external transactions for November.

  Assuming investors are risk-averse

Assuming investors are risk-averse, which alternative can be expected to bring the higher valuation?

  What is quartz maximum lease price

Quartz Corporation is a relatively new firm. Quartz has experienced enough losses during its early years to provide it with at least eight years of tax loss.

  An investment opportunity requires a payment of 750 for 12

an investment opportunity requires a payment of 750 for 12 years starting a year from today. if your required rate of

  What was the risk premium on large- company stocks

Assume large-company stocks earned 11.4 percent over a period of years. Over that same period, the risk-free rate was 3.6 percent and the inflation rate was 3.2 percent. What was the risk premium on large- company stocks during this time period?

  How much would each firm pay in taxes

Suppose that two firms emit a certain pollutant. The marginal cost of reducing pollution for each firm is as follows: Mc1 = 300e1 and Mc2 = 100e2.

  Equilibrium models of the capital asset pricing model

It is necessary to understand the equilibrium models of the Capital Asset Pricing Model and the Arbitrage Pricing Theory. Each model attempts to explain returns as a function of a risk measure(s). The CAPM extends the diversification discussion by..

  Irr of a perpetuity project

We saw in class that the IRR of a perpetuity project is exactly equal to the inverse of the payback period. I also noted that for non-perpetuity projects the relationship IRR = 1/PB is only an approximation, and that this approximation improves as..

  What is the weighted average cost of capital

The preferred stock has a current price of $10 per share and pays a level $1.00 dividend. The firm is in the 35% tax bracket. What is the weighted average cost of capital?"

  Determine the value of one share

Suppose you are planning a project which has been assigned a discount rate of 8 percent. If you start the project today, you will incur an initial cost of $480 and will receiv cash inflows of $350 a year for three years.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd