How much is the control premium per share

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Reference no: EM133004002

Roland acquires 70% of Felix on January 1, 2011. The terms of purchase is the Roland pays to Felix shareholders 70,000 shares of Roland common stock with market value of $20 per share. The remaining 30,000 shares of Felix were traded at $15 both just before the acquisition date and right after the acquisition date

Problem a. How much is the control premium per share

Problem b. How much is the total control premium paid by Roland

Problem c. Calculate business fair value

Problem d. Assume that 100% of the fair value of net assets acquired was $1,200,000. How much is goodwill

Problem e. How much goodwill is allocated to the controlling interest

Problem f. How much goodwill is allocated to the noncontrolling interest

Reference no: EM133004002

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