Question regarding the value for goodwill

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Reference no: EM131105031

A target firm has 7 million shares outstanding at a price of $20 per share. The acquiring firm offers a 10% takeover premium. The market value of the target's fixed assets is $125 million and it has $20 million in current assets. If the firm has $40 million in liabilities, what is its value for goodwill?

A. 35 Million

B. 29 Million

C. 49 Million

D. 55 Million

E. 9 Million

Reference no: EM131105031

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