Closed the acquisition of gulf aviation

Reference no: EM131117711

Gulf Aviation generates $800 million in revenue per year, with no material growth. The consolidated revenues for DefenseCo are $1.5 billion in year 1, $1.8 billion in year 2 (the year of the acquisition), and $2.5 billion in year

3. If DefenseCo closed the acquisition of Gulf Aviation on October of year 2, what is the apples-to-apples organic growth for DefenseCo in year 2 and year 3? How does organic growth differ from the growth in reported revenues? Assume Gulf Aviation revenues are consolidated into DefenseCo only after the acquisition close date and that the ?scal year closes for both companies on December 31 of each year.

Reference no: EM131117711

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