Calculate the goodwill created in the M-A transaction

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Reference no: EM133057160

Question - Assuming this is a stock deal, calculate the goodwill created in the M&A transaction given the following details.

Details ($ in millions):

-Shareholders' equity: $5,500

-Existing goodwill: $1,500

-Equity purchase price: $6,600

-Tangible and intangible asset write-ups: $1,200

-Deferred tax liabilities: $800

A. $2,000

B. $1,500

C. $2,200

D. $3,200

Reference no: EM133057160

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