New equity value of tyler

Assignment Help HR Management

Reference no: EM13817357

Talmadge Corporation is acquiring the target Tyler, Inc. in a merger. Both companies are publicly listed. Tyler's market valuation in the merger is $6.0 billion, and its equity value on its balance sheet before any adjustments is $3.0 billion. During the merger process, Tyler's inventories will be written down by $200 million, and its receivables will be written down by $300 million. On the other hand, under fair value accounting, its plant and equipment will increase in value by $700 million, and its patents and trademarks will increase in value by $300 million.

A) What is the new equity value of Tyler on its balance sheet?

B) How much goodwill will Talmadge enter on its balance sheet as a result of this merger?

C) If the prevailing market value of Tyler was $5.0 billion on the NASDAQ during the three months before the merger announcement, what is the premium over market value that Talmadge paid for Tyler in dollars and percent?

Reference no: EM13817357

Questions Cloud

Accounts receivable and allowance for doubtful accounts : Calculate the Accounts Receivable and Allowance for Doubtful Accounts balance as atDecember 31, 20x5

Assignment on criminal justice : CRIMINAL JUSTICE

Obviously a department use of force policy : Obviously a department's use of force policy must establish guidelines officers can apply to any given situation to determine the amount of force that would be appropriate. The policy should not be vague, being clear enough to ensure an officer can e..

Construct a network from the information : Construct a network from the information in the following table and identify all the paths in the network, compute the length of each, and indicate the critical path. Determine the earliest start and finish times, latest start and finish times, and s..

New equity value of tyler : What is the new equity value of Tyler on its balance sheet? How much goodwill will Talmadge enter on its balance sheet as a result of this merger?

Examine accounting principles : Examine accounting principles and concepts used in businesses. Assess appropriate internal controls, regulatory requirements according to the Sarbanes-Oxley Act, and fraud prevention and detection.

A firm is faced with the attractive situation : A firm is faced with the attractive situation in which it can obtain immediate delivery of an item it stocks for retail sale. The firm has therefore not bothered to order the item in any systematic way. However, recently profits have been squeezed du..

Family tree and population analysis : Family Tree and Population Analysis

Statements conform to financial accounting standards board : Analyze the selected not-for-profit's financial statements to determine if the statements conform to Financial Accounting Standards Board (FASB) guidance in Statement No. 117, Financial Statements of Not-for-Profit Organizations (FASB ASC 958-205-..

User Account

All Pages