Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Financial Management Expert

The following information pertains to Company A’s acquisition of Company Z:

Company A acquires Company Z for $600 million

Company A has assets of $600 million and liabilities of $400 million

Company A has existing Goodwill of $125 million

Company Z has assets of $500 million and liabilities of $200 million

Company Z has PP&E of $100 million and intangible assets of $50 million

After an evaluation by an appraiser, it was determined that Company Z’s PP&E was worth $50 million more than it appeared on its balance sheet and that its intangible assets were worth $25 million more, attributable to a solid brand name.

Using the purchase method of accounting for business combinations, and assuming no deferred taxes, what is the Goodwill created in this transaction?

$225 million

$300 million

$375 million

$400 million

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92786899

Have any Question?


Related Questions in Financial Management

Corporate financial management questions -part a -q1 200

Corporate Financial Management Questions - Part A - Q1. $200 invested today and earning 8 per cent per annum compounded semi-annually will grow to what amount at the end of three years? (A) $158.80 (B) $251.94 (C) $380.7 ...

Please respond to the followinga as a financial manager

Please respond to the following: a) As a financial manager, determine at what point the risk of an investments outweighs the potential reward. Provide support for your rationale. b) Explain whether or not you believe an ...

Part 1 conduct internet research sources must be documented

Part 1. Conduct Internet research, (sources must be documented using MLA format), and write a brief analysis of the current status of the U.S. economy. Include current values and trends for at least three of the followin ...

Please respond to the followingnbsp under 300 wordsa

Please respond to the following:  UNDER 300 Words a) Justify why a small investor would benefit from investing in a mutual fund, as compared to the many other investments that exist. Provide support for your justificatio ...

Assignment the art of negotiationresearch a current

Assignment : The Art of Negotiation Research a current conflict or negotiation in progress from the last 6 months like peace talks in the Middle East, a corporate merger, a labor dispute, etc. Write a six to eight (6-8) ...

Nbsppad 6227fall2018nbspassignmenteach problem is worth

PAD 6227 Fall2018   Assignment Each problem is worth one-half of the grade for this assignment. Make sure to carefully edit your work. 1. The Department of Revenue wants to add more people to the unit that attempts to co ...

In the land of free trade the public does not view all

In the land of free trade, the public does not view all industries as equal. Do you believe that is ethical? Do you believe that some industries are unfairly targeted? Should it be consumers' choice to partake in product ...

Management control systems and national cultures and

Management Control Systems and National Cultures and Corporate Social Responsibility o What steps, if any, is Amazon taking to be sensitive to the national culture. o What is Amazon doing with regard to Corporate Social ...

Case 1 hedging currency risks at aifsinstructionsplease

Case 1: Hedging Currency Risks at AIFS Instructions: Please download the case and accompanying material from the HBS link that I provided on Canvas. For your analysis of the case, I am asking you put yourself in the shoe ...

Please respond to the following discussion not an essay

Please respond to the following: {Discussion, NOT an Essay. Under 350 WORDS} a) Propose three reforms to the investment markets that might reduce their exposure to systematic risk. Support your proposals with examples. b ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As