Solution-Amount of goodwill involved in transaction

Amount of goodwill involved in transaction

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Reference no: EM131104462

An acquiring firm is willing to pay a 35 percent premium for a target firm's shares, currently selling at $40 per share. The target has one million shares outstanding, current assets of $9 million, fixed assets of $80 million, and liabilities of $40 million. The amount of goodwill involved in this transaction is:

A. $4,550,000

B. $5,000,000

C. $7,500,000

D. $6,650,000

E. $3,250,000

Reference no: EM131104462

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Amount of goodwill involved in transaction

Reference no: EM131104462

Reference no: EM131104462

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