Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Please find the problem attached
II. On 1/1/15 Big Co. acquired Little Co. in a business combination to be accounted for as a merger. Big paid $400,000 in cash plus a contingent consideration agreement. The contingent consideration agreement provided that additional cash payments would be made to the sellers based upon 3 year cumulative earnings growth, as set out in the following table:
3 year cumulative earnings growth
Additional payment
Likelihood of attaining that target
<4%
$0
10%
4.01% - 6%
$10,000
35%
6.01% - 9%
$20,000
30%
9.01% +
$30,000
25%
Little Co. had the following trial balance at 1/1/15:
Book value
Fair value
Cash and receivables
40,000
Inventory
50,000
55,000
Land
100,000
90,000
Equipment
200,000
170,000
Less: Accumulated depreciation, equipment
(50,000)
Patents
30,000
Current liabilities
Bonds payable, $100,000 face value
105,000
Common Stock
Paid in capital in excess of par
60,000
Retained earnings
130,000
At the end of 3 years, actual 3 year cumulative earnings growth was 5.6%.
Required:
Record the acquisition of Little, as well as the payment after 3 years of any contingent consideration payment.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd