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Total cost to company b to consummate deal

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Reference no: EM132554985

Company B (bidder) just completed a M&A project and the target was Company T. This project was an all cash deal. Prior to M&A, Company T had Long term debt outstanding of $450.

The balance sheet for Company B prior to M&A was given below:
Current Assets = $100 Current Liabilities = $60
Fixed Assets = $1200 Long Term Debt = $550
Total Assets = $1300 Equity = $690
Total Liabilities and Total Equity = 1300

The balance sheet for Company BT post M&A was given below:
Current Assets = $140 Current Liabilities = $85
Fixed Assets = $1950 Long Term Debt = $1285
Goodwill = $150 Equity = $870
Total Assets = $2240 Total Liabilities and Total Equity = $2240

What was the total cost to Company B to consummate this deal?

How much additional L-T-D must be issued to finance this project?

Reference no: EM132554985

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