If the transaction is a purchase will there be any goodwill

Assignment Help Financial Management
Reference no: EM131867775

The DOC Corporation with a book value of $20 million and a market value of $30 million has merged with the CIC Corporation with a book value of $6 million and a market value of $8 million at a price of $9 million. If the transaction is a purchase will there be any goodwill, and if so, what is the amount of goodwill?

Reference no: EM131867775

Questions Cloud

High level of positive net working capital in firm : No real problems can arise from management retaining a high level of positive net working capital in a firm.
Account each year to fund your children education : How much money must you deposit in an account each year to fund your children’s education?
What is his marginal tax rate : If he had won $1,000 in the state lottery, his tax liability would have risen to $22,337. What is his marginal tax rate?
Explain why company decides to increase its annual dividend : Which of the following factors is most likely to explain why a company decides to increase its annual dividend?
If the transaction is a purchase will there be any goodwill : If the transaction is a purchase will there be any goodwill, and if so, what is the amount of goodwill?
Elimination of the glass-stegall act : Determine the role that the 1999 elimination of the Glass-Stegall Act played in the endangerment of the global financial system.
Common stock-value-constant growth personal finance problem : Common stock - value—Constant growth Personal Finance Problem. what is the most you would be willing to pay per? share?
What is about the corporate perspective : what makes investors prefer high dividend payouts and what makes them prefer low dividend payout. What’s about the corporate perspective?
Component in the time series decomposition model : Which of the following is not a component in the time series decomposition model?

Reviews

Write a Review

Financial Management Questions & Answers

  Which bond has the greatest interest-rate risk

Which bond has the greatest interest-rate risk? A 15-yr bond with a 4% coupon (no principal payments priot to maturity) the bonds in B and E tie for the highest interest rate risk.

  What is the net present worth of the project which requires

What is the net present worth of the project which requires 110,000 investment now and receives 30,000 every year for five years at an interest rate of 12%.

  What is this projects equivalent annual cost

A five-year project has an initial fixed asset investment of $275,000, an initial NWC investment of $23,000, and an annual OCF of −$22,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

  Stock performed in the short term and the long term

How has Procter and gambles stock performed in the short term and the long term? Discuss the trends and offer the reader you opinion as to why the stock has performed the way it has.

  How bank would use a swap to achieve this objective

A bank currently holds a loan with a principal of $12 million.- Explain how the bank would use a swap to achieve this objective.

  Calculate the duration and the volatility of this bond

calculate the duration and the volatility of this bond.

  Annual lease payments remaining in its contract

ZXC has 20 annual lease payments remaining in its contract. The next one for $2.5m is due in 4 months. The payments decrease with the equipment value by 4% per year. Using a 12% discount rate, what is today’s present value of the remaining lease paym..

  Should management accept or reject this proposal

A manufacturing engineer for the No-Hassle Inc. (the same one presented in the lecture) has come up with a new idea: Build a special tool for the common part, which we will simply call Part X. Part X is used for both P and Q. What would the payback p..

  What is the expected effect on share repurchase programs

What is the expected effect on share repurchase programs from the passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003?

  Least prudent in terms of risk management strategy

Which of the following planning recommendations is least prudent in terms of risk management strategy?

  Potentially hinder effort and potential of fellow employees

how can relatives working for the company could potentially hinder the effort and potential of fellow employees?

  Semiannual bond-what is the aftertax cost of debt

Himiny's Cricket Farm Issued a 26-year, 14 percent semiannual bond 3 years ago. The bond currently sells for 90 percent of its face value. The company's tax rate is 33 percent. What is the aftertax cost of debt? Do not round intermediate calculations..

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