Calculate the goodwill created from this transaction

Assignment Help Accounting Basics
Reference no: EM133182510

Question - The total transaction value of this deal is $25 billion, and the total identifiable assets of Company B is just $15 billion with no existing goodwill. Now Company A needs to write-up Company B's total assets by $250 million, assuming the marginal tax rate for Company B is 40%, calculate the goodwill created from this transaction.

Reference no: EM133182510

Questions Cloud

What is the investment in accounts receivable : A payment cycle of 26 days. If its sales for the period just ended amounted to P972,000, what is the investment in accounts receivable
What is a corporation social responsibility : 1. Labor unions can be important players in three different political systems: pluralism, corporatism, and communism. Give examples of each and describe the key
Calculate the cost of ordinary equity for the company : Khan Ltd's ordinary shares current market price is $36 per share. Calculate the cost of ordinary equity for the company
Establish culture of ethical behavior : You are opening your own small business and want to establish a culture of ethical behavior.
Calculate the goodwill created from this transaction : The total transaction value of this deal is $25 billion, and the total identifiable assets of Company B is just $15 billion. Calculate the goodwill created
How can firms ensure that their code of business ethics : How can firms ensure that their code of business ethics is read, understood, believed, remembered, and acted on rather than ignored?
What type of strategies are using by harveys : Question 1: What type of strategies are using by Burger King presently? Question 2: What type of strategies are using by Harveys.
Calculate your total profit or loss for each : You sell 3,000 put options at $2 each and 3,000 call options at $3 each. Calculate your total profit/loss for each of the following prices: $50, $55, $60, $65
Think executive compensation-current level is unethical : Do you think executive compensation in its various parts (i.e., salary, stock options, severance packages) funded at the current level is unethical?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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